Unique Accomodations in Iceland
Iceland isn't just a place you visit. It's a destination you experience. And where you stay matters just as much as where you go. In this guide, you'll find unforgettable accommodations that go beyond basic hotels, think glass igloos, bubble domes, turf houses, and remote eco-cabins. These are the kinds of places that turn a trip into a story. Whether you want to sleep under the aurora or wake up in a house built into the hillside, Iceland has a stay that fits your sense of adventure.
1. Glass Igloos for Northern Lights Viewing
Imagine lying in bed, hot chocolate in hand, watching green and purple waves of light ripple across the Arctic sky. That’s not a dream, it’s what you get in Iceland’s glass igloos. These futuristic domes are more than just a gimmick. They're purpose-built for aurora hunting, combining panoramic glass ceilings with cozy interiors that keep you warm through sub-zero nights.
You’ll find some of the best-rated igloo stays in South Iceland, especially around Hella and Thingvellir National Park, both known for minimal light pollution and easy access from Reykjavik. A popular option is the Aurora Igloo in Hella, where guests can enjoy private domes equipped with heated floors, smart lighting, and even a northern lights wake-up call system.
Best time to stay? Mid-September to early April, when the nights are long and dark enough to catch the aurora. Some igloos even offer direct bookings bundled with glacier tours or ice cave excursions. Just remember to book months in advance, especially for peak aurora season.
2. Icelandic Turf Houses
Step into a fairytale, or perhaps a Tolkien novel. Icelandic turf houses, with their grass-covered roofs and rounded doorways, look like Hobbiton dropped into the land of fire and ice. These historic homes date back to the 9th century, when Viking settlers used turf to insulate their homes against Iceland’s biting winds.
Today, a few of these structures have been lovingly restored into guesthouses and Airbnb-style lodges. One standout is Keldur Farm, near Hvolsvöllur, part museum and part guest experience. Another option is the Húsið Guesthouse in the north, which offers a modernized turf-style stay with sweeping views over snow-covered hills.
Staying in a turf house isn’t just about aesthetic charm. It’s about feeling grounded in Icelandic history, hearing the wind whistle past your living roof, and waking up to sheep grazing outside your window. Many hosts offer storytelling nights or even cooking sessions featuring Icelandic lamb and flatbread.
3. Bubble Hotels Under the Stars
For a surreal experience, book a night in a transparent bubble hotel. Hidden in forests or lava fields, these bubbles provide total immersion in Icelandic nature. There's usually minimal light pollution, making them ideal for stargazing or watching the northern lights.
One of the most famous options is the 5 Million Star Hotel (Bubble), located along the Golden Circle route. Guests stay in individual clear domes surrounded by birch trees, with access to shared bathrooms and optional guided tours. It’s minimal, but magical—and perfect for couples.
Note: Bubble stays are seasonal and typically close in the harshest winter months. Bookings often include pickup from Reykjavik and a nighttime drive to your dome, making the journey part of the adventure.
4. Off-Grid Cabins in Remote Locations
Iceland is the ultimate destination to unplug. Off-grid cabins in the Westfjords, Snæfellsnes Peninsula, or Eastfjords are ideal for those seeking solitude and self-reflection. Think candlelit evenings, geothermal hot tubs, and dramatic landscapes right outside your door.
Most of these cabins are solar-powered or geothermally heated, built with sustainability in mind. Some have no Wi-Fi or cell service, offering a rare chance to disconnect fully. Standouts include eco-cabins near Djúpavík and private hillside retreats overlooking fjords in Seyðisfjörður.
Pro tip: These places are often accessible only by gravel roads, so renting a 4x4 is a smart move.
5. Eco-Lodges with Geothermal Pools
Combine sustainability with indulgence at Iceland’s eco-lodges—often found nestled in geothermal hotspots. These stays are all about balance: low environmental impact, high relaxation value.
Try the Frost & Fire Hotel in Hveragerði, where geothermal pools bubble just a few steps from your room. Or book a room at the Ion Adventure Hotel near Thingvellir, which boasts sleek, modern architecture and a stunning lava field backdrop.
Expect organic meals, natural materials, and activities like horseback riding or hiking directly from the lodge. It’s wellness with an Icelandic twist.
6. Treehouse Stays with a View
Treehouses in Iceland? Yes, and they’re just as dreamy as they sound. Elevated among pines or overlooking river valleys, these rare finds offer panoramic views and a sense of childhood wonder.
The Panorama Glass Lodge, although more of a stilted glass cabin than a treehouse, gives a similar lofty feel with views of the Hekla volcano and northern lights from bed. Another off-the-beaten-path option is the Tiny Treehouse near Akureyri, available via Airbnb and surrounded by quiet woodland.
These stays are limited, so book well in advance. Most offer full kitchens, modern bathrooms, and a sense of serene seclusion you won’t find in hotels.
7. Boutique Hotels with Nordic Design
For lovers of minimalism, warmth, and design, Iceland’s boutique hotels are a dream. These stylish stays combine contemporary Nordic aesthetics with local materials like stone, wood, and wool. You’ll find many in Reykjavik, but also hidden gems in Vik, Húsafell, and Egilsstaðir.
Expect cozy interiors, custom furnishings, and details like handmade ceramics and locally sourced breakfasts. One standout is Hotel Húsafell, set between glaciers and lava fields, offering geothermal baths and a striking blend of modern and rustic.
8. Volcano-View Hotels
Waking up to a volcano on the horizon? Only in Iceland. Stays near Hekla, Katla, or even the still-active Eyjafjallajökull put you in prime position to explore dramatic terrain—and possibly catch a plume of steam in the distance.
Try Hotel Ranga, a luxury countryside lodge with hot tubs that overlook volcanoes and rivers, or ION Adventure Hotel, which balances sleek architecture with proximity to geothermal energy and lava fields.
9. Countryside Farmhouse Retreats
Iceland’s farms offer more than fresh skyr and roaming sheep. They’re immersive escapes into rural life, often run by families who have lived on the land for generations.
Stay at a working farm in South Iceland, where you can help feed the animals, take guided walks, or just enjoy a peaceful breakfast made from local ingredients. These retreats are ideal for travelers who want to slow down and get a taste of authentic Icelandic hospitality.
10. Cave Hotels and Lava-Formed Rooms
Some of Iceland’s most atmospheric stays are carved into the very rock that defines its landscape. These cave-style hotels or rooms partially built into lava fields offer a cozy, almost otherworldly experience.
You’ll find options near Lake Mývatn or along the Golden Circle, where volcanic rock has been integrated into modern design. These spaces tend to be quiet, naturally insulated, and perfect for travelers who want something totally different from the standard hotel room.
11–15: Bonus Picks for the Curious Explorer
11. Hot Springs Hotels
Stay where you soak. From the iconic Blue Lagoon Retreat to the laid-back Secret Lagoon Guesthouse, these accommodations put you just steps from steamy geothermal waters.
12. Northern Lights Hotels
Many countryside hotels in Iceland turn off exterior lighting during peak aurora season, giving you front-row seats to the sky show. Look for places in Mývatn, Snæfellsnes, and East Iceland.
13. Unique Airbnbs in Iceland
Converted buses, shipping containers, lighthouses, and even greenhouses have been reimagined as unforgettable Airbnb stays. Some are completely off-grid; others sit right on the coast.
14. Iceland Luxury Lodges
If you're looking to splurge, check out places like Torfhús Retreat or Deplar Farm, where high-end service meets pristine wilderness. Think heli-skiing, private chefs, and handcrafted interiors.
15. Coolest Hotels in Reykjavik
Urban adventurers aren’t left out. Try ION City Hotel or Canopy by Hilton for modern, art-filled rooms in the heart of the capital—perfect for design lovers who want walkable access to bars, galleries, and cafés.
Planning Tips for Unique Stays in Iceland
Book early: Many of these places are small and fill up months in advance, especially during summer and aurora season.
Map it out: Iceland’s geography is dramatic. What looks close on a map may be hours apart due to terrain and road conditions.
Set your budget: Unique doesn’t always mean expensive, but some of the more remote or luxurious options come with a price tag. Look out for seasonal offers or off-peak deals.
Pack smart: Even high-end stays require waterproof boots and layers. Icelandic weather doesn’t care about your hotel’s star rating.
Stay Connected with Firsty
Exploring Iceland’s black beaches, glacier lagoons, and remote valleys is unforgettable. But staying connected makes your trip smoother and more flexible. Whether you're navigating to a hidden hot spring, checking the aurora forecast, or booking your next unique stay, Firsty helps you stay online wherever you are in Iceland.
Firsty uses eSIM technology to provide fast and reliable internet access across the country. There’s no need to buy a local SIM card or rely on unpredictable hotel Wi-Fi. Just install the eSIM, choose your plan, and go. From Reykjavik to the Eastfjords, your connection moves with you.
Why choose Firsty?
Worldwide coverage: Stay connected to the strongest local networks across Iceland, from Reykjavik to the most remote highland roads. No SIM swapping required.
Affordable plans: Pay only for what you need. Firsty offers transparent, flexible pricing with no hidden fees.
Flexible options: Switch plans, add days, or adjust usage anytime. Whether you're here for a weekend escape or a month-long road trip, you're always in control.
Reliable connection: Use your data for maps, messages, bookings, and sharing views from your glass igloo or bubble dome. Firsty works in cities, towns, and even Iceland’s wildest landscapes.
With Firsty, you don’t miss a moment. Travel smarter, stay connected, and explore Iceland with confidence.
Conclusion
Iceland offers more than just breathtaking scenery. Its unique places to stay are part of what makes the journey unforgettable. Whether you're sleeping in a glass dome under the northern lights, relaxing in a hillside cabin, or soaking in a geothermal pool outside your eco-lodge, the place you choose becomes part of your story.
Wherever your adventure takes you, from the streets of Reykjavik to the edge of a glacier, staying connected helps you make the most of it. With Firsty, you can easily search for your next stop, check the weather, update your travel plans, or share the view from your bubble hotel, all without missing a moment.
The right accommodation can transform your trip, and the right connection keeps you open to every possibility along the way. So plan ahead, stay curious, and let Iceland surprise you with every turn in the road, every sunrise, and every starry sky.
Want to look for unique places to stay in other countries? Explore our guides to Namibia, Japan and Peru for even more unforgettable stays!
