Title: The 10 Best 5 Star Hotels in Southern Iceland - 2026 Updated Prices | Expedia.co.uk

[Southern Iceland Travel Guide](https://expedia.co.uk/Southern-Iceland.dx668923434895958016)[Hotels in Southern Iceland](https://expedia.co.uk/Southern-Iceland-Hotels.d668923434895958016.Travel-Guide-Hotels)[Holiday Rentals in Southern Iceland](https://expedia.co.uk/Southern-Iceland-Holiday-Rentals.d668923434895958016.Travel-Guide-HolidayRentals)[Flights to Southern Iceland](https://expedia.co.uk/Cheap-Flights-To-Southern-Iceland.d668923434895958016.Travel-Guide-Flights)[Southern Iceland Car Hire](https://expedia.co.uk/Compare-Cheap-Car-Hire-In-Southern-Iceland.d668923434895958016.Car-Hire-Guide)[Southern Iceland Holidays](https://expedia.co.uk/Southern-Iceland.d668923434895958016.Holidays-City-Breaks)

![Drone shot of awesome  Sigöldugljúfur - Valley of tears in Iceland. You need to get proper 4x4 car to get there but its really worth it. Not to mention that there will not be a lot of tourists or probably none at all so you can enjoy raw #nature at peace :)](https://images.trvl-media.com/place/553248635975635401/cdc564b6-b631-436d-b325-7e1ddd6b81d6.jpg?impolicy=fcrop&w=1200&h=500&q=medium)

Photo by Ľuboš Capcara

![](https://images.trvl-media.com/place/553248635975635401/cdc564b6-b631-436d-b325-7e1ddd6b81d6.jpg?impolicy=fcrop&w=1200&h=500&q=medium)

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## Check availability on Southern Iceland 5 Star Hotels

Tonight

[13 Jan - 14 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-13&endDate=2026-01-14&adults=2&star=50&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true)

Tomorrow

[14 Jan - 15 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-14&endDate=2026-01-15&adults=2&star=50&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true)

This weekend

[16 Jan - 18 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-16&endDate=2026-01-18&adults=2&star=50&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true)

Next weekend

[23 Jan - 25 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-23&endDate=2026-01-25&adults=2&star=50&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true)

## Our top choices for Southern Iceland 5-star hotels

![Penthouse, 1 Bedroom, Corner | View from room](https://images.trvl-media.com/lodging/72000000/71620000/71618300/71618236/9dad1cab.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Penthouse, 1 Bedroom, Corner | Living area | Flat-screen TV](https://images.trvl-media.com/lodging/72000000/71620000/71618300/71618236/0b6d77df.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Lobby](https://images.trvl-media.com/lodging/72000000/71620000/71618300/71618236/c1445120.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![3 bars/lounges, cocktail bar, rooftop bar, lobby lounge](https://images.trvl-media.com/lodging/72000000/71620000/71618300/71618236/a9f1c544.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

### The Reykjavik EDITION

[](https://www.expedia.co.uk/Reykjavik-Hotels-The-Reykjavik-EDITION.h71618236.Hotel-Information)

Downtown Reykjavik

9.4/10

Exceptional

(570 reviews)

"The whole staff is amazing and take really good care of their guest !"

![United States](https://a.travel-assets.com/egds/marks/flags/us.svg)

pablo

£329

includes taxes & fees

2 Feb - 3 Feb

[](https://www.expedia.co.uk/Reykjavik-Hotels-The-Reykjavik-EDITION.h71618236.Hotel-Information)

![Exterior](https://images.trvl-media.com/lodging/34000000/33990000/33987100/33987034/7066aca6.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Reception](https://images.trvl-media.com/lodging/34000000/33990000/33987100/33987034/c5d40b19.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![View from room](https://images.trvl-media.com/lodging/34000000/33990000/33987100/33987034/fdf856a1.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![3 restaurants, breakfast, lunch, dinner served; Scandinavian cuisine ](https://images.trvl-media.com/lodging/34000000/33990000/33987100/33987034/be675c02.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

### The Retreat at Blue Lagoon Iceland

[](https://www.expedia.co.uk/Reykjavik-Hotels-The-Retreat-At-Blue-Lagoon-Iceland.h33987034.Hotel-Information)

Grindavik

9.8/10

Exceptional

(163 reviews)

"Wonderful experience - loved every minute"

![United States](https://a.travel-assets.com/egds/marks/flags/us.svg)

Laura

[](https://www.expedia.co.uk/Reykjavik-Hotels-The-Retreat-At-Blue-Lagoon-Iceland.h33987034.Hotel-Information)

![Lunch and dinner served](https://images.trvl-media.com/lodging/35000000/34450000/34449100/34449003/42cab7c4.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Premium bedding, free minibar, in-room safe, individually decorated](https://images.trvl-media.com/lodging/35000000/34450000/34449100/34449003/w2785h1859x47y0-eb7230a1.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Interior detail](https://images.trvl-media.com/lodging/35000000/34450000/34449100/34449003/820b9539.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Exterior detail](https://images.trvl-media.com/lodging/35000000/34450000/34449100/34449003/fee92cf6.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

### Torfhús Retreat

[](https://www.expedia.co.uk/Blaskogabyggd-Hotels-Torfhus-Retreat.h34449003.Hotel-Information)

Bláskógabyggd

10/10

Exceptional

(37 reviews)

"Excellent food, friendly, love the hot spring spa"

![United States](https://a.travel-assets.com/egds/marks/flags/us.svg)

Roger

[](https://www.expedia.co.uk/Blaskogabyggd-Hotels-Torfhus-Retreat.h34449003.Hotel-Information)

![Food and drink](https://images.trvl-media.com/lodging/11000000/10260000/10259300/10259289/4df6b28a.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Couples treatment room(s), sauna, hot tub, steam room, massages](https://images.trvl-media.com/lodging/11000000/10260000/10259300/10259289/98749ca5.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Couples treatment room(s), sauna, hot tub, steam room, massages](https://images.trvl-media.com/lodging/11000000/10260000/10259300/10259289/7e52ae58.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

![Couples treatment room(s), sauna, hot tub, steam room, massages](https://images.trvl-media.com/lodging/11000000/10260000/10259300/10259289/14059e9d.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium)

### Diamond Suites by Reykjavik Keflavik Airport

[](https://www.expedia.co.uk/Reykjavik-Hotels-Diamond-Suites.h10259289.Hotel-Information)

Reykjanesbær

8.8/10

Excellent

(42 reviews)

"The Diamond Suites were fantastic—a perfect, relaxing place to stay for our last night! The staff were wonderful and made sure everything went perfectly. Great stay!"

![United States](https://a.travel-assets.com/egds/marks/flags/us.svg)

Marisa

£363

includes taxes & fees

25 Jan - 26 Jan

[](https://www.expedia.co.uk/Reykjavik-Hotels-Diamond-Suites.h10259289.Hotel-Information)

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## Explore similar 4-star hotels

Many 4-star hotels have the same amenities as 5-star hotels. See all 4-star hotels in Southern Iceland.

![Fosshotel Reykjavik](https://images.trvl-media.com/lodging/10000000/9040000/9031800/9031743/4c46e13b_y.jpg?impolicy=resizecrop&rw=402&ra=fit)

### Fosshotel Reykjavik

Þórunnartún 1 - Höfðatorg Reykjavik 

£157

26 Jan - 27 Jan

includes taxes & fees

9/10 Wonderful! (1,014 reviews)

[](https://expedia.co.uk/Reykjavik-Hotels-Fosshotel-Reykjavik.h9031743.Hotel-Information)

![Alda Hotel Reykjavik](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/940267ad_y.jpg?impolicy=resizecrop&rw=402&ra=fit)

### Alda Hotel Reykjavik

Laugavegur 66-68 Reykjavik 

£148

21 Jan - 22 Jan

includes taxes & fees

9.2/10 Wonderful! (1,160 reviews)

[](https://expedia.co.uk/Reykjavik-Hotels-Alda-Hotel-Reykjavik.h8120033.Hotel-Information)

![Fosshotel Glacier Lagoon](https://images.trvl-media.com/lodging/13000000/12800000/12794300/12794262/ba6b496d_y.jpg?impolicy=resizecrop&rw=402&ra=fit)

### Fosshotel Glacier Lagoon

Hnappavellir, 785 Öræfi Fagurholsmyri Eastern Region

£164

16 Jan - 17 Jan

includes taxes & fees

9.4/10 Exceptional! (1,005 reviews)

[](https://expedia.co.uk/Fagurholsmyri-Hotels-Fosshotel-Glacier-Lagoon.h12794262.Hotel-Information)

Still don't see what you're looking for?

[See all properties in Southern Iceland.](https://expedia.co.uk/Hotel-Search?rfrrid=TG.LP.Hotels.Hotel&startDate=14%2F01%2F2026&endDate=15%2F01%2F2026&regionId=668923434895958016&star=50)

You can also use these popular filters to refine your search.

[Pool](https://expedia.co.uk/Hotel-Search?rfrrid=TG.LP.Hotels.Hotel&startDate=14%2F01%2F2026&endDate=15%2F01%2F2026&regionId=668923434895958016&star=50&star=50&amenities=POOL)[Spa](https://expedia.co.uk/Hotel-Search?rfrrid=TG.LP.Hotels.Hotel&startDate=14%2F01%2F2026&endDate=15%2F01%2F2026&regionId=668923434895958016&star=50&star=50&amenities=SPA_ON_SITE)[Hot tub](https://expedia.co.uk/Hotel-Search?rfrrid=TG.LP.Hotels.Hotel&startDate=14%2F01%2F2026&endDate=15%2F01%2F2026&regionId=668923434895958016&star=50&star=50&amenities=HOT_TUB)[Breakfast included](https://expedia.co.uk/Hotel-Search?rfrrid=TG.LP.Hotels.Hotel&startDate=14%2F01%2F2026&endDate=15%2F01%2F2026&regionId=668923434895958016&star=50&star=50&amenities=FREE_BREAKFAST)[Waterpark](https://expedia.co.uk/Hotel-Search?rfrrid=TG.LP.Hotels.Hotel&startDate=14%2F01%2F2026&endDate=15%2F01%2F2026&regionId=668923434895958016&star=50&star=50&amenities=WATER_PARK)

Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply.

## Learn more about Southern Iceland

Venture to popular sights like Reykjavik Harbour and Blue Lagoon as you discover Southern Iceland. 

[See all hotels in Southern Iceland](https://www.expedia.co.uk/Hotel-Search?startDate=2026-01-27&endDate=2026-01-28&adults=2&regionId=668923434895958016)

![Reynisfjara black sand beach in Iceland. Reynisfyal Mountains](https://images.trvl-media.com/place/668923434895958016/34e2edcf-ee2e-4b52-82cc-44f335b74458.jpg?impolicy=fcrop&w=900&h=306&p=1&q=high)

## Top Southern Iceland Hotel Reviews

![The Reykjavik EDITION](https://images.trvl-media.com/lodging/72000000/71620000/71618300/71618236/00208474_y.jpg)

### The Reykjavik EDITION

10/10 Excellent

"Everything was really good, the staff is friendly and service was great. "

[](https://expedia.co.uk/Reykjavik-Hotels-The-Reykjavik-EDITION.h71618236.Hotel-Information)

## Find out more about Southern Iceland

## Frequently asked questions

### How much does it cost to stay in a 5-star hotel in Southern Iceland?

> - Search for the lowest price per night from £148

### What makes a hotel 5 stars in Southern Iceland?

### Are there any 5-star all-inclusive resorts in Southern Iceland?

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