There may be more unique places to stay in Iceland than in any other country in the world. With one of the most rugged and beautiful landscapes on Earth, Iceland presents the perfect backdrop to unusual lodging.
There are cool hotels in Iceland across the entire country, with options available whether you’re driving the Golden Circle or the entire Ring Road. You can find fun and affordable pod hostels or boutique camping cabins, all the way up to luxurious and edgy modern hotels.
Whether you are after an ultra-luxe Airbnb or a unique hostel, there will be something on this list for you. I made sure to include unique hotels in Iceland located all over the country (starting from Reykjavik) so you can plan the perfect road trip between these unique places to stay in Iceland. Happy adventuring!
Unusual Places to Stay in Iceland, Starting with Reykjavik
Assuming you will be arriving into Reykjavik first, here are some of the unique Iceland hotels located in the capital city.
If you have unique experiences, make sure to stop by the very…. interesting… Iceland Phallological museum and read about our hilarious experience.
101 Hotel, a Member of Design Hotels
Located in the heart of Reykjavik, this is one of the cool hotels in Iceland not to be missed. Named after the oldest city postal code, 101, the hotel hosts artwork by Icelandic artists in its sleek minimal design. Creative people who appreciate design will love their stay here.
The black and white-styled rooms are spacious enough for families or people traveling in pairs, and for those who want to opt for the extra luxurious experience, there are rooms with balconies. The hotel is also home to a restaurant that serves international and Icelandic cuisine and an art gallery.
Galaxy Pod Hostel Reykjavik
If you haven’t experienced sleeping in a futuristic space pod, now is the time to try it at one of these unusual places to stay in Iceland. The Galaxy Pod Hostel is perfect for Iceland travel on a budget while providing comfort, space, and location.
The hostel offers the perfect environment for travelers with a cozy social space, a bar, shared bathrooms and kitchen, and mountain views. The sleeping pods, with their cool space vibe, include a light inside, charging space, and a door you can close for privacy. With an almost 9/10 rating on Hotels.com, it’s a hostel backpackers can’t miss!
Kex Hostel: Unique + Boutique Reykjavik Hotel/Hostel
The Kex hostel is one of the perfect unique places to stay in Iceland for travelers who want to be in the heart of it all. Even the hostel, which was once a biscuit factory, boasts local Icelandic spirit and style, using salvaged materials “blending a vintage industrial feel with an eclectic, contemporary touch.”
The hostel also includes more features than most backpackers would expect, including a gym and laundry. In addition to dorms, this hostel also offers single, double, and twin rooms for guests who like to have extra privacy while still on a budget and enjoying a social environment.
Reykjavik Domes: Cool Domes Outside the City
Located just 10 minutes from downtown Reykjavik, these domes are one of the more unusual places to stay in Iceland. With three domes available, each includes mountain views, a private fireplace, and a hot tub. The most luxurious dome, the King Suite, even offers a private bathroom and kitchen.
For a true escape, these domes are perfect for one’s own privacy and a spectacular time in Iceland’s natural landscape. With the northern lights out from late August to late April, these domes are the perfect space to experience this amazing phenomenon in the pitch black of dark, away from city lights.
Cool + Unique Hotels in Iceland
Here are some of the cool hotels and unusual places to stay in Iceland all around the rest of the country. Check the map at the top for locations or plan these stays during an Iceland road trip. Make sure to get your car rental in Reykjavik Iceland before setting off to some more of these incredible locations.
Skrauthólar Esjan: Refurbished Buses with Green Mountain Views
Esjan has brought a hot new take to glamping with its refurbished buses donning kitchenettes, full size beds, and cozy seating. Not to mention, the views are just something else with mountains on one side and the sea on the other. Located 30 minutes from Reykyavik, it’s a bit off the beaten path (and perfect if that’s the adventure you’re looking for!).
You’ll share the glamping grounds with other guests (& potentially some rooster!), so yes, be prepared to maybe hearing some crowing in the mornings. The buses can get a bit cold, but there is heating to keep you cozy. Overall, it’s not a luxurious unique place to stay in Iceland, but it’s most definitely beautiful and rustic.
Hotel Ranga: One of Iceland’s Cool Hotels with Themed Rooms
Hotel Ranga embraces Icelandic style and nature in its Southern Iceland location about an hour and a half from Reykjavik. There are a few different room styles and themes here, from classic cabin to ocean-themed to almost futuristic black and white.
They take pride in being a prime location to view the northern lights and star-gaze – offering telescopes in the evening and taking visits from local astronomers to provide night tours.
The hotel also offers hot tubs perfect for relaxing in the night while taking in the amazing night sky. With the South Coast full of glaciers, waterfalls, and beaches, the hotel offers tours for everyone, from adventure-seeking adults to families with small children.
Hotel Viking: Unique Viking Themed Iceland Hotel
Located just 20 minutes from Reykjavik, this is one of many unique Iceland hotels to stay at when visiting this part of the world. Why? Well, because it’s a part of a greater experience of the Viking Village! The hotel itself exudes classic styles including Viking and West Nordic themes, and the entrance is decorated with art from Iceland, Greenland, and the Faroe Islands.
The Viking Restaurant will be a real treat for visitors as traditional meals are served on Viking-style trays in a Medieval-themed space. After a grand meal and checking into your room, the hotel provides a geothermal hot tub perfect for winding down. As we love events like Renaissance Faires, we make a point of it to stay here in Iceland for the immersive experience!
Frost & Fire Hotel: Unique Hotel in Iceland with Hot Springs
This is one of the unique Iceland hotels to get away with your friends, family, romantic partner, or even colleagues. Nestled in the village of Hveragerði right on the famous Golden Circle drive, the riverfront hotel aims to bring every guest the peace they desire. It’s one of our top choices to when we plan trips to Iceland!
With geothermal hot springs surrounding the hotel, the river Varmá is one of the few rivers in Iceland visitors can wade into due to the hot spring water that warms it. In particular, guests at this cool Iceland hotel must take advantage of the space for geothermal bathing, including a sauna, riverside hot tubs, and an outdoor thermal pool. Guests can also enjoy hiking, experience earthquake tourism, and try geothermal cooking in the surrounding area.
ION Adventure Hotel: Incredible Unusual Iceland Hotel
There are multiple benefits to staying at the ION Adventure hotel, from the northern lights bar to the nordic cuisine. Located near the UNESCO World Heritage site Thingvellir National Park, the hotel is the perfect base for an Icelandic adventure.
The hotel even offers adventure tours, the name “Adventure Hotel” ranging from tours like snorkeling, caving, horseback riding, and glacier snowmobiling. After a busy day of adventuring, the hotel hosts a natural spa that offers massages and thalassotherapy for ultimate relaxation, and of course a sauna and outdoor heated pool with an EPIC view.
Laxá Hotel: Remote + Unique Hotel
The Laxá hotel is in the perfect location for travelers in Iceland looking for a comfortable, yet stylish place to stay with great food and mountain or lake view rooms. Located in Mývat, the hotel is near many incredible hikes – perfect for those who love hiking made convenient to reach.
The Icelandic landscape views from every corner of this minimalistic hotel are simply stunning. The hotel and its restaurant are also ideal for retreats and events of up to 160 people looking to experience Iceland’s nature and dining. The hotel also hosts a meeting space for up to 25 people free of charge.
The Retreat at Blue Lagoon Iceland: Sleek Unique Hotel at Famous Landmark
This is one unique hotel in Iceland that’s on our bucket list: The Blue Lagoon. Situated just 20 minutes from the international airport, you should make it a priority to stay and relax before you fly out of Iceland! When you stay here, unlike most visitors who pay for their pass to the Blue Lagoon and Retreat Spa, you get unlimited access to the Retreat Lagoon (separate from the Blue Lagoon) and Retreat Spa.
The suites here offer incredible views from moss to molten lava, and one suite even has its own private lagoon. In addition, guests can expect incredible breakfasts, coffee times in the lobby, and morning yoga sessions. Experience the height of Iceland’s thermal springs and enjoy the luxury spaces, treatments, and peace of The Retreat.
Other Unique Iceland Lodging: B&B’s, Cabins, and Camps
Here are some final unique places to stay in Iceland that are not quite hotels, but incredible one-of-a-kind ideas for lodging you won’t find anywhere else.
Buubble The Five Million Star Hotel: one of the Most Unique Places to Stay in Iceland
You may have already picked it up, but Buubble Five Million Star Hotel gets its name from the fact you can see the starry sky staying in these isolated bubbles! Yet unlike most unusual places to stay in Iceland, a stay here includes both a guided tour with stops like Thingvellir National Park, Seljalansfoss, Island’s famous black sand beach, AND a one-night experience in the transparent bubble.
For adventures in Iceland, this hotel is our go to. The tour includes pick-up from Reykjavik in the morning, a full-day exploration and a one-night stay, perfect for viewing the night sky and even the northern lights depending on the season.
Anarstapi Cottages: Unusual Cottages in Remote Landscape
Located along the Snaefellness Peninsula, these are the perfect little cottages to base yourself on exploring west Iceland’s nature. Each of the 10 unique slanted standalone cottages is equipped with a double bed, bathroom, fridge, and WiFi, so visitors will feel cozy coming back here after adventurous day trips.
Like many unique places to stay in Iceland, the cottages have mountain views, spectacular for enjoying nature from the warmth of your bed. There’s also an onsite restaurant for the convenience of eating a hearty meal without looking elsewhere. Staying here, you’ll have the perfect private space to wind down and the ideal base for exploring amazing Iceland.
Panorama Glass Lodge: Super Cool Glass Iceland Lodging
Situated on both the South and West Coasts of Iceland, the Panorama Glass Lodges are some of the most unusual places to stay in Iceland and are perfect for those looking for an unforgettable travel experience. Each lodge includes a private bathroom, kitchen, and terrace for extra exclusivity and comfort.
With a Viking-inspired design, the bedroom is the main star as the glass walls allow for incredible views of the ocean, rivers, or even the Hekla volcano, depending on where you stay. Of course, the hot tub and sauna can’t be forgotten, perfect for relaxing after a day of travel.
Affordable Unique Places to Stay in Iceland: Hostels + Camps
Because I know Iceland is an expensive country where many search for budget options, I have placed the final few options into a budget category for those looking to save money. Check my guide to saving money in Iceland too!
Puffin Nest Capsule Hotel
Located on the Island of Vestmannaeyjabær, home of Iceland’s puffin tours, you can sleep here on a budget and enjoy this once-in-a-lifetime experience. In the center of town, it’s the perfect space to explore the area and grab a bite to eat.
While the common area is not as cozy as the Galaxy Pod Hostel, visitors can expect a shared kitchen, bathrooms and showers, and a lounge area. In addition, the capsule beds include chargers, a TV, an air conditioner, and a closing door to feel as cozy as a puffin in its nest.
Camp Boutique: Iceland Glamping with a View
Who doesn’t love when they find an accommodation with more than a 9 out of 10 rating? I know we do as this means that no matter if it’s a hostel, hotel, or glamping, the experience is bound to be incredible.
Camp Boutique is located in one of the most beautiful and remote places to stay in Iceland, and although they consider themselves a “tent hotel,” it resembles a glamping experience.
These aren’t your classic camping tents for going to festivals or hiking – these are massive tents that host comforts including a bed, table, and living room furniture. One aspect of staying here that makes the experience extra special is that the tents are located only a five-minute walk from Iceland’s famous black sand beach!
Framtid Lodging Barrels (Framtíð tjaldsvæði)
Located on the East Coast of Iceland, the Framtid Lodging Barrels are a cozy and very affordable place to stay inside an actual barrel in Djupivogur if you are driving the Ring Road. The barrels have a simple interior design including a seating area, three beds, electrical outlets, and heating.
Each morning a local breakfast is served for a fee, and free WiFi is provided in the main property building. Because this is a camping site, the barrels are pet friendly, and the kitchen and bathrooms are shared. Despite Iceland’s amazing nature, it’s no doubt cold, and these barrels are the perfect way to experience a bit of comfort while still thriving in the outdoors.
Fossatun Camping Pods
The Fossatun Camping Pods are one of many unusual places to stay in Iceland where camping meets comfort. The camping pods are ideal for those camping around Iceland and have their sleeping bag, which many choose to do while traveling Iceland in the summer. For visitors without a sleeping bag, bed linens can be rented for the night.
The pods are ideal for escaping the cold Iceland weather and even have a bit of luxury with hot tub access! The pods can host 2 to 3 guests and include a seating area, bed, and mini-fridge. The bathrooms and kitchens are shared spaces guests will also have access to! And of course, for those who just want to sit back and relax, there’s an onsite restaurant and even a breakfast buffet for a fee every morning.
I hope you have found the perfect options for unique places to stay in Iceland during your trip. Let me know in the comments below which one(s) you booked!
Passionate, full-time travel blogger with over 230k on social media and 150kMPV blog. Extraordinary photographer with two DSLR's + a drone with a love for capturing candid moments, epic drone shots, and magical compositions. I'm a natural-born content creator originally from California, but I've been on the road for 9 years living, working, traveling, blogging, and photographing my way around the world. I recommend the most amazingly adventurous and unique + boutique travel experiences/stays and helpful products to my audience and write comprehensive guides on my website that have helped millions of travelers so far. I love to inspire people to plan their dream trips, and many readers have given feedback as such. The reach on my platforms continues to soar, especially when combining cutting-edge social content with optimized articles on my high-authority website.