Skip to main content

Featured boutique hotel destinations

Destination inspiration for your trip – find a boutique hotel

The 10 Best South Iceland Boutique Hotels – Design Hotels in South Iceland, Iceland

Check out our pick of great boutique hotels in South Iceland

Filter by:


Review score

Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
Our top picks Lowest price first Star rating and price Top reviewed

See the latest prices and deals by choosing your dates.

Hótel Lækur

Hella

The family-owned Hótel Lækur is set on an Icelandic horse farm, between the Golden Circle and the south coast. Hella is 10 minutes’ drive away. It offers a sun terrace and a guest lounge.

The bright, modern rooms feature wooden floors and private bathrooms. Some include either a terrace or balcony. The surrounding views take in the Hekla and Eyjafjallajökull volcanoes. Beautiful location! The cabins are very confortable, with plenty of natural light and ventilation. The bathroom is of good size and modern too. The terrace of the cabin is great and has a great view of the river and the field and the sunset. The breakfast was very good! All the staff was very friendly and helpful. Out kids were invited to feed the horses and they loved it.

Show more Show less
9
Superb
1,067 reviews
Price from
£146
per night

Old Airline Guesthouse

Höfn

Located by the harbour in Höfn village, Oldairline Guesthouse offers a shared kitchen/lounge, plus free WiFi and parking. Jökulsárlón glacier lagoon is a 1-hour drive away.

Featuring modern décor and a flat-screen TV, all rooms at Oldairline have access to 2 shared bathrooms with free toiletries. Super homey and comfortable guesthouse. Really nice dorms, really good beds, fabulous kitchen. Perfectly arranged and managed by owner. A delight!!!! Completely advisable.

Show more Show less
9.1
Superb
396 reviews
Price from
£86
per night

Mengi Countryside

Kjarnholt

At Mengi Countryside, you can enjoy mountain views from your room. Modern Nordic design and décor are featured throughout the property. Bathroom facilities are shared, and a guest lounge is also available. nice staffs, clean public restroom, nice natural jacuzzi outside.

Show more Show less
9.4
Superb
204 reviews
Price from
£117
per night

Kósý Vík

Vík

The Kósý Vík homestay offers bright and modern rooms with free WiFi access. The centre of Vik is just 4 minutes' walk away. The property offers free parking.

At Kósý Vík, each room includes a desk, a coffee machine and bathroom with free toiletries. Guests have their own entrance to the property. If breakfast is ordered, please note that it is served in a basket to the room. Excellent breakfast option served in a picnic basket!

Show more Show less
9.3
Superb
220 reviews
Price from
£123
per night

Thoristun Apartments

Selfoss

Located in central Selfoss, these self-catering apartments include a well-equipped kitchen and free WiFi access. Thingvellir National Park is a 30-minute drive away.

A seating area and flat-screen TV feature in all apartments at Thoristun Apartments. Each apartment has a bathroom with shower. Some have a private terrace. Nice and clean apartments with a wonderful location. Kitchen well equipped for light or heavy meals ! Easy check in. Keys on the door at arrival.

Show more Show less
9.4
Superb
851 reviews
Price from
£120
per night

Grand Guesthouse Gardakot

Gardakot

This tastefully appointed, family-run guest house, 13 km from Vík, is surrounded by the Mýrdalsjökull Glacier and Atlantic Ocean. It features free Wi-Fi, a fully equipped guest kitchen and living room. Everything is amazing! From the room, to the shared spaces, to the outside. Simply stunning. The owner is super friendly, kind and very attentive. She made the most amazing breakfast with lots of homemade products or fresh from the farm. Amazing location as well, super comfy beds, fantastic shower and I can keep going. The price is really competitive for the area, I think, especially for the service you get. 10/10 worth it! Thank you!!! I’ll keep saved this place for future trips! P.s. super friendly and fluffy dog always waiting to greet new guests!

Show more Show less
9.5
Exceptional
740 reviews
Price from
£154
per night

Guesthouse Dyngja

Höfn

Guesthouse Dyngja is located in Höfn and offers a terrace. This bed and breakfast provides free private parking, a shared kitchen and free WiFi. Featuring family rooms, this property also provides guests with a picnic area. The kitchen is fully equipped and the room is comfortable.

Show more Show less
9
Superb
794 reviews
Price from
£76
per night

Hotel Rangá 4 stars

Hella

Featuring a stargazing observatory on site, this luxury hotel is in an idyllic remote location next to the Rangá salmon river in Hella. The hotel offers wake-up calls for when the Northern Lights appear and turns off all lighting for the viewing experience. Guests can also enjoy outdoor hot tubs and free WiFi. Great and spacious rooms (we had tried the Japanese inspired junior suite and then 1 night in the large suite), both offered great space (latter with a jacuzzi in the room). Overall excellent service across full experience, great restaurant and beautiful peaceful landscape. Additionally, star gazing observatory is very nice and guide explains the beautiful skyscape. We got super lucky and caught the Northern Lights for over an hour during the star gazing tour!

Show more Show less
9
Superb
450 reviews
Price from
£361
per night

Milk Factory

Höfn

Offering views of Vatnajökull glacier, this former milk factory offers accommodation in Höfn and is just 4 km from the town centre. Free WiFi and private parking is available on site.

The rooms have simple decor and come with a TV. Certain rooms have views of the mountain or garden. All rooms are equipped with a private bathroom. a lot of space in the room. very clean and tidy

Show more Show less
8.9
Fabulous
2,162 reviews
Price from
£126
per night

Fosshotel Glacier Lagoon 4 stars

Hnappavellir

Fosshotel Glacier Lagoon offers luxurious accommodation in Hnappavellir. Guests can enjoy the on-site restaurant and hotel bar. Fjallsárlón lagoon is 20 km from the hotel and the glacier lagoon Jökulsárlón and the diamond beach are 29 km away from the hotel. Free WiFi access is available throughout the hotel. On-site parking is free. Staff was great, and the location is amazing!

Show more Show less
8.8
Fabulous
4,088 reviews
Price from
£201
per night

Most booked boutique hotels in South Iceland this month

Boutique Hotels that guests love in South Iceland