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Unforgettable Iceland Stays in 2023 for an once-in-a-lifetime experience

Updated: Aug 31, 2023


With folk tales full of elves, trolls and “hidden people”, mysterious landscape, a sparse population, Iceland is a country that inspires many myths and legends. The island owes its existence to a large volcanic fissure in the Mid-Atlantic Ridge, where the Eurasian and American tectonic plates meet. And you will see the volcanic influence wherever you go: lava fields will casually pass you by, you will spend a night at the base of an active volcano, hot springs will soothe your aching bones at the end of a long day.

Hidden gems in Iceland

Here are some Unique Boutique guesthouses and Luxury stays in Iceland which will help you experience the island in a slower more personal way! Enjoy!


Hotel Budir

We have been crushing over this elegant stay, perched atop lava fields of Snaefellsness. It is located in a national reserve, overlooking the Atlantic in a tiny village which is a namesake, whose claim to fame is a black church standing aloof against a backdrop of rugged mountains.

Hotel Rangaa

The rustic luxury that this hotel offer has earned it the tag of being the "only 4-star hotel" of the region. But beyond the labels too, this hotel has so much to offer. Take their in house star gazing observatory into account, or the mesmerizing landscapes, or the farawayness that the property offers.

Ion Adventure Hotel

A stay in this hotel will bring you as close to 007 experience as there is. Located on a bed of lava fields, the hotel has spectacular views from all its rooms, the hotel's tagline is "Where everything meets nothing".

Panorama Glass Lodge

Imagine this. It's just the two of you, in a lodge overlooking a lake, with glass ceilings and glass walls, that leave you in the company of aurora fairies. There is just one lodge, so the wait is long. Book waaayyyy in advance to experience this magical intimate space with your partner.

Kirkjubær Guesthouse

A church that is converted into a guesthouse, had us interested on the go! Located in the East Fjords, it mostly sees travellers who are driving along the ring road. Located in a fishing village of Stodvarfjordur , accommodates around 7-10 persons with sleeping arrangements in beds, and sleeping bags.

Bubble Hotel

It calls itself the 5 million star hotel and that sets the tone of your stay which is one of the most sought after experience in Iceland currently. These bubble-shaped igloos offer a 180-degree view of the skies and you can only imagine lying back in bed gazing at the Northern lights.

Hotel Djupavik

This is a renovated dormitory for herring factory workers set in the otherworldly landscapes of the West Fjords. While you can still take a tour of the processing plant, built-in 1934, sleeping here is an exciting part of the experience: The eight renovated double rooms ooze vintage charm. One can go for a guided tour to the Herring factory or set off Canoeing nearby.

Glamping at Thormsork

Thorsmork Nature Reserve is a nature lovers paradise, especially hikers. After a day about in the National Park consider staying back in the National Park in Volcano Huts, for a glamping experience in the middle of nowhere. Getting there is just as exciting as the stay itself. Your 4x4 vehicle will take you through rivers and snowfields until you reach your final destination.

The Silica at The Blue Lagoon

The Blue Lagoon is a must-do during your visit to Iceland. This manmade hot pool heated by natural mineral springs is a great way to end of the trip by soaking in the warm waters. Many travellers choose to stay back in the luxurious Silica Hotel, as it offers a wellness twist at the end of the Iceland Adventure. The Blue lagoon recently launched a premium luxury property adjacent to it called The Retreat. And it is for the ultimate luxury experience, with its own Lagoon entry, hot springs carved in rocks, the works!

Skalakot Manor, Hvolsvollur

The farm has been with the family for eight generations, it was only in 1985 when they started welcoming guests to the main building. While is is a home to a cosy romantic rural getaway, it still is a farm up and running, breeding Icelandic horses. This helps them offer horse tours to the nearby locations. Its a great base for exploring southern iceland, with easy proximity to the black sand beaches, under the boughs of the Eyjafjallajokul volcano. Oh and it has its own hot tub too!

Hotel Franciscus, Stykkisholmur

Build by the Stykkisholmur harbour, Franciscus is set in a historic building, set up by a group of Catholic nuns who came here in the beginning of the century to set up a monastery. They set this up instead and the hotel still houses a functioning chapel. This harbour side dream in pastels, also offers some great views of the mountains, bay and the city.

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The Mill House Þykkvibær

Set in south Iceland, it is surrounded by fields on all sides. But is close enough to the beaches, and the view of the Vestmann islands are mesmerising. A great rustic chic cottage, ideal for large groups. It has two buildings joined in the middle, with plenty of common areas for dining and living. It can sleep up to 13 people. Go here for togetherness.

Sunnuhlid, Akuryeri

These cute beach houses appear as the perfect dreamscape for every traveller. Set out on the beach, sleeping two persons per cottage, but close enough to Akuryeri to pick up supplies , it is the best of both worlds. Views like that and compact comfort is what these huts offer. The living room with the dining and a couch to gaze at the sea is on the ground floor, the bedroom is up in the attic. This house is officially for elves:)

Be sure to include one or some of these stays when you plan your Iceland trip from India with The Blueberry Trails

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