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Stay in Iceland: A Comprehensive Guide to the Most Unique Accommodations

Luxury Hotel Budir located on the beach of the Snaefellsnes peninsula in west Iceland offering views over the Snaefellsjokull volcano and glacier.
Luxury Hotel Budir located on the beach of the Snaefellsnes peninsula in west Iceland offering views over the Snaefellsjokull volcano and glacier.
Photo by depositphotos.com

Iceland, often referred to as the land of fire and ice, captivates travelers with its dramatic landscapes, geothermal wonders, and rich cultural heritage. Beyond its natural beauty, the country offers some of the most unusual places to stay in Iceland, providing experiences that go beyond the conventional hotel room. For adventurers seeking to immerse themselves fully in Iceland’s allure, these unique accommodations offer the perfect blend of comfort and novelty. From sleeping under the Northern Lights in glass hotels to unwinding in eco-friendly earth lodges, Iceland’s distinctive lodging options are as varied and enchanting as its terrain.

1. Sleep Under the Stars in Glass Hotels

Panorama Glass Lodge
Photo by panoramaglasslodge.com

An Unparalleled Northern Lights Experience

Imagine drifting off to sleep as the Aurora Borealis dances overhead. Glass igloos offer this surreal opportunity, allowing guests to witness one of nature’s most spectacular phenomena without leaving the comfort of their bed. These transparent domes are strategically located away from city lights to maximize the visibility of the Northern Lights.

Modern Comforts Amidst Arctic Wilderness

Despite their remote settings, glass igloos come equipped with modern amenities such as heating systems, comfortable bedding, and private bathrooms. The Buubble Hotel, also known as the “5 Million Star Hotel,” exemplifies this experience. Nestled in secluded forests, it provides privacy and unobstructed views of the night sky. According to Well+Good Travel, it’s one of the best ways to embrace Iceland’s celestial displays.

Activities and Surroundings

Beyond stargazing, guests can enjoy:

  • Guided Northern Lights tours
  • Daytime hikes through nearby forests
  • Visits to local geothermal pools

These activities make glass igloos one of the most unique places to stay in Iceland.

2. Embrace Solitude in Remote Lighthouses

Dalatangi Lighthouse
Dalatangi Lighthouse
Photo by Flickr

A Retreat into Tranquility

For those yearning for solitude, camping near a remote lighthouse offers an unparalleled escape. Perched on rugged coastlines, these lighthouses provide panoramic views of the Atlantic Ocean and a serene backdrop for relaxation.

Activities and Wildlife

Guests can indulge in:

  • Whale and bird watching
  • Coastal hikes
  • Photography of stunning seascapes

This unusual place combines history, nature, and tranquility.

3. Experience Rustic Charm in Traditional Turf Houses

Icelandic turf houses covered with grass
Icelandic turf houses covered with grass
Photo by depositphotos.com

Stepping Back in Time

Turf houses represent centuries-old Icelandic architecture, featuring grass-covered roofs and earthen walls. Staying in one offers a glimpse into the country’s past.

Authentic Cultural Immersion

The Árbæjarsafn Open Air Museum provides opportunities to visit these traditional homes. And forlagid.is offers turf houses for rent. While maintaining historical authenticity, they offer modern comforts like:

  • Electricity and heating
  • Comfortable furnishings
  • Educational workshops

Educational Opportunities

Guests can participate in:

  • Workshops on traditional building techniques
  • Guided tours explaining historical significance

These experiences make turf houses an unusual place to stay in Iceland that’s both comfortable and enlightening.

4. Stay in Luxury at Converted Sheep Sheds

Deplar Farm
Photo by elevenexperience.com

From Humble Beginnings to Opulent Retreats

Iceland’s agricultural heritage shines through in its converted sheep sheds. These structures have been transformed into luxurious cabins, blending rustic exteriors with stylish interiors.

Deplar Farm

Located in the remote Fljót Valley, Deplar Farm was once a working sheep farm. Now, it’s a high-end resort featuring:

  • Geothermal pools
  • Spa facilities
  • Gourmet dining experiences

Guests can engage in activities like heli-skiing and snowmobiling. As highlighted by Jared’s Detours, it’s a premier destination for adventure seekers.

Sustainable Luxury

These accommodations focus on sustainability by:

  • Utilizing local materials
  • Implementing eco-friendly practices
  • Supporting local communities

5. Unwind in Eco-Friendly Earth Lodges

Ion Adventure Hotel
Photo by Flickr

Sustainable Living Amidst Nature

Earth lodges offer eco-conscious travelers accommodations that minimize environmental impact. Built using natural materials, they blend seamlessly with the landscape.

Ion Adventure Hotel: A Sustainable Haven

Near the UNESCO-listed Thingvellir National Park, the Ion Adventure Hotel is a testament to sustainable design. It features:

  • Geothermal energy heating
  • A natural hot spring-fed pool
  • Rooms with expansive views

According to Kimkim, it’s an ideal base for exploring nearby natural wonders.

Activities and Exploration

Guests have easy access to:

  • Hiking trails
  • Diving in the Silfra fissure
  • Exploring geysers and waterfalls

Staying here enhances the connection with Iceland’s natural beauty.

6. Dive into History at Repurposed Industrial Spaces

Blue Lagoon (Bláa Lónið), Iceland
Blue Lagoon (Bláa Lónið), Iceland
Photo by Flickr

Industrial Meets Icelandic Charm

Transforming old factories into boutique hotels adds a contemporary twist to Iceland’s lodging scene.

The Blue Lagoon Silica Hotel

Once part of a geothermal power plant, the Blue Lagoon Silica Hotel offers:

  • Exclusive access to private lagoons
  • Spa treatments
  • Modern rooms with volcanic landscape views

As per Miss Tourist, it’s a fusion of industrial heritage and relaxation.

Cultural and Historical Significance

Staying here allows guests to appreciate:

  • Iceland’s geothermal innovations
  • Contemporary Icelandic design
  • The intersection of industry and nature

Conclusion

The most unique places to stay in Iceland offer more than just a bed for the night—they provide immersive experiences that resonate with the country’s awe-inspiring landscapes and rich heritage. Whether gazing at the Northern Lights from a glass igloo or embracing sustainable living in an earth lodge, these unusual accommodations invite you to see Iceland from a new perspective. By venturing beyond conventional lodging, you not only enhance your journey but also create lasting memories that capture the essence of this remarkable land.

External Links

UnusualPlaces Field Notes

Location
Multiple accommodations in Iceland, including examples in Reykjavík, South Iceland, Westfjords, Fljót Valley and near Þingvellir; no single property represents this lodging roundup.
Access
Book each hotel or guest accommodation directly and follow its guest-only access rules; some private-property locations are disclosed only after booking. The article’s suggestion of camping by remote lighthouses is not general permission: Iceland’s Environment Agency says campervans and similar vehicles must use organized campsites or obtain landowner permission, and protected areas can impose stricter rules.
Admission
No admission ticket to the country-wide lodging guide. Room rates, spa entry, meals and activities are property-specific and may require advance booking; lodging guests-only facilities are not general public attractions.
Time needed
The lodging article does not prescribe a sightseeing duration. Each property is booked by night; allow additional nights for travel between distant regions. For an aurora-focused stay, Visit Iceland recommends several nights because clear skies and aurora activity are not guaranteed.
Best season
Choose season by experience and property. Visit Iceland lists the Bubble Hotel as open mid-April to September, while its aurora guidance gives late August through late April as the viewing season; neither guarantees Northern Lights. Confirm the exact accommodation’s dates, road access and weather.
Opening hours
No common hours for this list of hotels and private stays. Check each property’s current check-in, reception, restaurant and spa schedule directly; seasonal availability varies by operator.
Facts checked
2026-10-02

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