Of the 1.7 million travelers flocking to Iceland each year, the majority confine themselves to the vibrant capital of Reykjavík and its easily accessible ‘Golden Circle’ attractions. Here, visitors marvel at thundering waterfalls, bubbling geysers, and dramatic rifts, all nestled within the stunning Southwest region.
Yet, for those with a spirit of adventure, the journeys extend far beyond the familiar paths. Brave souls are drawn to the ancient south coast, with its striking black sand beaches and ethereal glacial lagoons, or to the enchanting Snæfellsnes Peninsula, known for its conical volcano and striking basalt formations. Others embark on the complete ‘ring road’ tour, traversing the scenic eastern fjords and the culturally rich northern city of Akureyri, while some even equip themselves with snowshoes to explore the uncharted highlands.
Volcanic eruptions, part and parcel of life in this rugged land, are exemplified by the recent activity at Sundhnúkagígar on March 16, 2024. Despite this, much of the country remains welcoming to travelers.
While Reykjavík boasts a remarkable collection of design-focused accommodations, a trove of thoughtfully curated spots awaits discovery in the less-traveled regions that lie beyond the capital. Join us as we uncover some of the most creatively designed retreats—from luxurious remote cabins to artisanal lodges and reimagined turf houses.
The Ion Adventure Hotel
Less than an hour east of Reykjavík, the road veers off toward Þingvallavatn National Park and its namesake lake, where the Nesjavellir power station rises amid the landscape, its plumes of steam billowing above. It might be easy to overlook this industrial backdrop as a fitting locale for a boutique hotel, yet it is here that the Los Angeles-based Icelandic architectural firm Minarc has ingeniously repurposed an old workers’ hostel, transforming it into the ION Adventure Hotel since its opening in 2013.
The hotel’s striking structure is supported by a network of stilts beneath its forty elegant rooms, each prefabricated with sustainability in mind. Each room features water-saving concrete bathrooms, driftwood sculptures, and cozy wool rugs, all echoing the vision of founder Sigurlaug Sverrisdóttir. A standout feature is the Northern Lights bar, a double-height glass pavilion jutting from the main structure, while just below, the LAVA Spa beckons guests to relax in its geothermal-heated pool, seamlessly blending into the mossy terrain outside.
www.ionadventure.ioniceland.is
Torfhús Retreat
The history of traditional Icelandic turf houses, or torfbæir, can be traced back to the island’s 9th-century settlement and flourished until the mid-20th century. For Icelandic-Swiss couple Siggi Jensson and Alex Hoop, the ancestral architectural style was a natural choice when constructing the Torfhús Retreat, nestled amid the wind-swept glacial valleys near the Golden Circle.
This luxury haven comprises fifteen grassy-roofed cottages, each named after Norse gods. The largest feature kitchens and private geothermal pools, crafted from local basalt—mirroring the dry-stone walls of the retreat. Inside, reclaimed Austrian pine envelops the space, with plans for two new chef-catered villas slated to open in 2024.
An 18th-century corn barn doubles as the retreat’s reception area and fine-dining restaurant, showcasing Nordic-inspired decor, including salmon leather wall hangings, Ukrainian folk figurines, and even a replica Viking longboat, honoring the region’s historical settlers. “The spirit is all Icelandic,” Hoop affirms.
www.torfhus.is
Hotel Rangá
Moving beyond the bustling Golden Circle, southern Iceland reveals a landscape steeped in agricultural tradition—horse riding and cattle grazing flourish alongside volcanic streams tumbling into monochrome estuaries. Family-owned Hotel Rangá sits on the northern bank of the river of the same name, its unassuming exterior a façade hiding a world of charm within.
Rooms radiate from a cozy conservatory restaurant and sunlit terrace—complete with hot tubs—leading to an upstairs lounge adorned with a curated art collection, including the whimsically named “The Ladies Legs,” a pair of bespoke carved wooden chairs discovered by hotelier Fridrik Pálsson during travels in Italy.
The hotel’s guest rooms feature bespoke murals by local artists, while the thematic ‘Continental Suites’ are inspired by distant cultures. The ‘South American Suite’ envelops visitors in a cocoon of Inca-inspired woodwork, elegant Uruguayan table lamps, and a majestic Peruvian tapestry, all culminating in a stepped ceiling that pays tribute to the Andes. “Initially, I was hesitant about the continental theme,” reflects Fridrik. “I worried it might feel inauthentic. Now, I take pride in saying we’ve nailed it. Guests who’ve visited those continents frequently remark on the authenticity we’ve achieved.”
www.hotelranga.is
Svartaborg Cabins
“We began with the landscape,” notes Róshildur Jónsdóttir, part of the design duo behind Svartaborg, a serene cluster of luxury cabins perched on a remote hillside in northern Iceland. With a breathtaking view of the Skjálfandafljöt Valley as their only company, these six, soon to be nine, 55-square-meter cabins represent the couple’s most ambitious project to date, uniting architecture, furniture, lighting, and interior design.
The exterior’s minimalist black wood echoes the lines of a neighboring barn from Róshildur’s family’s former cattle-farming homestead. Following a series of renovations to farmhouses since 2017, the couple has expanded their vision into hospitality.
Inside each glass-fronted cabin, guests will find bespoke design elements, from handcrafted salt dishes to woven baskets and cozy blankets, reflecting recent collaborations with artisans in Sierra Leone and their ongoing partnership with Nordic creatives. “As frequent travelers, we designed these homes to suit us as a couple,” Róshildur explains. Every detail has been meticulously considered—from a bathroom door that opens to reveal a hot tub gazing up at the mesmerizing auroras, to floors crafted from local glacial sediment, polished to enhance their natural hues.
www.svartaborg.com
The Retreat at the Blue Lagoon
Renowned for its captivating volcanic landscape, Iceland is home to one of the world’s most active volcanoes. The eruption at Sundhnúkagígar on March 16, 2024, briefly closed the doors on the Blue Lagoon, one of the nation’s signature attractions. Nonetheless, it remains a bucket-list destination for many travelers, and for those fortunate enough to access its exclusive entry, The Retreat offers a haven of luxury with 62 elegantly designed suites, a spa, and private bathing options.
Basalt Architects, led by partner Sigríður Sigþórsdóttir, conducted a comprehensive study of the surrounding topography and ecology. The building’s layout flows with the earth’s natural crevices, leading to a waterfront lounge that welcomes guests with a breakfast spread and sumptuous afternoon teas. Here, precast concrete and locally-sourced terrazzo floors complement dappled metallic screens, echoing the region’s distinctive igneous rock.
Dining options include the Michelin-starred Moss Restaurant, where meals are served on slabs of local lava rock, and the more laid-back Lava restaurant, where guests are welcome to dine in their spa robes. A corridor leads guests through intimate chambers where rest awaits beneath rain-drop ceilings or by crackling fires. The hotel’s signature spa experience, the ‘Ritual,’ features subterranean basins filled with silica mud and soothing lava salt scrubs—an ideal conclusion after a rejuvenating soak in the lagoon.
Both the Blue Lagoon and The Retreat are anticipated to reopen in the spring; however, it is advisable to check with the Icelandic Meteorological Office and the Blue Lagoon’s website for updates related to recent volcanic activity.
www.bluelagoon.com/the-retreat
Explore More in the Gallery Below
As you delve into these extraordinary havens, let the accompanying gallery inspire your journey to Iceland’s hidden gems.
