Explore top 2026 5 Star Hotels in Southern Iceland

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Top Southern Iceland 5 Star hotels

The Reykjavik EDITION

The Reykjavik EDITION

5 out of 5
AUSTURBAKKI 2 Reykjavik
$393 nightly
The price is $443 total per night from Apr 6 to Apr 7
$443 total
Apr 6 - Apr 7
Total with taxes and fees
A full-service spa, a 24-hour gym, and a restaurant are all featured at this smoke-free hotel. Relax with a drink at one of the 3 bars/lounges and get perks ...
9.4/10 Exceptional! (604 reviews)
Room was spotless

Reviewed on Mar 14, 2026

Opens in a new windowThe Reykjavik EDITION
The Retreat at Blue Lagoon Iceland

The Retreat at Blue Lagoon Iceland

5 out of 5
Norðurljósavegur 9 Grindavik Southern Peninsula
This luxury hotel features a full-service spa, hot springs, and 3 restaurants. Enjoy the 24-hour gym and free perks like cooked-to-order breakfast and valet ...
9.8/10 Exceptional! (166 reviews)
The staff was impeccable as were the rooms, food and amenities.

Reviewed on Jan 29, 2026

Opens in a new windowThe Retreat at Blue Lagoon Iceland
Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport

5 out of 5
Vatnsesvegi 12-14 Reykjanesbær
$447 nightly
The price is $502 total per night from Mar 19 to Mar 20
$502 total
Mar 19 - Mar 20
Total with taxes and fees
This smoke-free hotel features a full-service spa, 5 hot tubs, and a restaurant. Traveling on business? Take advantage of the business center, free WiFi in public ...
8.8/10 Excellent! (43 reviews)
Everything was on point and what you would expect.

Reviewed on Feb 6, 2026

Opens in a new windowDiamond Suites by Reykjavik Keflavik Airport
Torfhús Retreat

Torfhús Retreat

5 out of 5
Dalsholt Bláskógabyggd South Iceland
This luxury cabin features 15 outdoor pools, a restaurant, and a bar/lounge. There's no skimping on freebies - guests receive free buffet breakfast, free WiFi, ...
10/10 Exceptional! (37 reviews)
Our stay at Torfhus Retreat was great. The location is perfect for exploring the Golden Circle – we could easily visit major sites without exhausting drives. The hospitality was warm and genuine, making us feel completely at home. One of our favorite surprises was the charming Icelandic horses at ...

Reviewed on Nov 9, 2025

Opens in a new windowTorfhús Retreat
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Southern Iceland Resorts & 5 Star Hotels

Looking for your own little slice of heaven during your next trip? Check out all the best 5-star hotels in Southern Iceland to make sure your trip is as extravagantly comfortable as you expect.

Whether you plan on staying in your room the whole time or getting out and enjoying the city, you’ll be living the life while staying at your luxury accommodation. With so many amenities at your beck and call, you might try to turn your stay into a staycation!

Many of the 5-star hotels have award-winning restaurants you can dine at, as well as plush bedding and a concierge service to take care of your every need. Most also offer pools and modern fitness centers, not to mention high-speed Wi-Fi.

For your next trip, book a hotel that can be your own little hideaway, whether you’re in town for business or leisure. Southern Iceland 5-star hotels provide you with all the comforts and amenities you expect from a sophisticated hotel, with a staff that’s happy to ensure you have everything you need to feel at home.

Whether you’re a first-time guest, or you’ve stayed in 5-star hotels in Southern Iceland before, you’ll have no shortage of options to choose from on your next trip when you book with Travelocity. Browse our vast selection and find great deals on luxury lodging.

Recent Southern Iceland hotel reviews by fellow wanderers