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Eco Friendly Hotels in Iceland: The 12 Best Sustainable Hotels

Updated: Jul 3, 2023

Sustainable travel has never looked so good. Discover the best eco-friendly hotels in Iceland for a low-impact adventure in the land of fire and ice.

A eco-friendly hotel in Iceland surrounded by lava
The ION Adventure Hotel in Iceland is one of the best eco friendly hotels in Iceland

Iceland in the far north Atlantic Ocean is a hot spot for eco-friendly hotels and sustainable stays. With geothermal energy bursting from the ground, endless opportunities for outdoor adventures, and sustainably sourced cuisine, it’s a fantastic choice for a low-impact vacation. To help you offset your stay in the country, we’ve picked out the 10 best eco-friendly hotels in Iceland.

The Best Eco Hotels in Iceland:


Nestled amidst the rugged beauty of Iceland's Fljót Valley and Troll Peninsula Mountains in north Iceland, Deplar Farm is an oasis of luxury and sustainability. This eco-friendly hotel in Iceland is a reincarnation of an old sheep farm, which has been transformed into a bespoke resort that embraces its natural surroundings.

With a focus on reducing its carbon footprint and minimizing waste, Deplar Farm is powered by clean and renewable energy sources, such as geothermal and hydro power. Guests can bask in the serenity of their rooms, designed to seamlessly blend into the wild landscape, while enjoying the comfort of organic linens, locally sourced bath products, and low-flow showerheads.

At Deplar Farm, travelers are invited to immerse themselves in the untouched wilderness, connecting with nature and experiencing the untamed beauty of Iceland. This hotel is a perfect example of sustainable tourism at its finest, and a wonderful choice for an eco hotel in Iceland.

The Retreat at Blue Lagoon is environmentally friendly opulence at its best. This exclusive spa sits a few levels above the Blue Lagoon, switching out the tourist-trap feel for a more sophisticated wellness experience.

The hotel suites here are luxuriously minimalist, designed to blend in with the natural features that surround the hotel: mineral blue geothermal water and dark basalt lava rock. It's a superb eco-friendly hotel in Iceland. Staying overnight at The Retreat comes with a whole suite of extras you’d expect for such price points. You’ll receive access to The Retreat’s own private geothermal lagoon and the subterranean spa area where all treatments take place.

Guests can also go on guided hikes, attend relaxing yoga sessions, and access a private golf course. Admission to the Blue Lagoon is included as well. Boasting the Gold Class environmental rating from Vakinn, this might just be Iceland’s most sustainable wellness experience to date.

A girl sitting outside her room at The Retreat, the Blue Lagoon's low-impact and luxurious spa hotel
Having your own balcony overlooking a slice of private lagoon? Yes please.

Combining the latest green technology with sleek Nordic design, ION Adventure Hotel is a luxurious eco-friendly hotel in Iceland’s Golden Circle. Located south of Lake Thingvellir, this sophisticated establishment is smack bang in the middle of a geothermal hotspot.

Sulphurous steam swirls out of rifts in the landscape, kaleidoscopic colours collide at the edge of bubbling mud pots, and an ancient, moss-laden lava field stretches towards the nearby mountains. It’s ritzy, yet responsible; perfect for indulging in some low-impact volcanic adventures.

From inside the hotel, floor-to-ceiling windows offer views over this landscape, lifted straight out of a science fiction novel. The hotel incorporates lava, reclaimed wood, Icelandic wool, and other natural recycled materials into its construction, and everything from the bed linen to the food in the restaurant is organic and fair trade.

Electric car charging ports are located in the parking area, allowing guests to jump into nearby Thingvellir National Park with ease. Environmentally-friendly travel in Iceland has never looked so good.

The Guldsmeden Hotel chain is for its commitment to environmentally friendly practices and local, sustainable style. Thanks to its strong eco-friendly ethos, Eyja Guldsmeden has obtained the Green Globe certification.

Expect light and airy rooms filled with bamboo furnishings, gorgeously soft beds, and local, organic amenities. The Eyja Hotel is in Reykjavik’s 105 neighbourhood, a short walk from all the downtown action. It's another great option for an eco hotel in Reykjavik.

The fantastic hotel restaurant uses organic and local food, while the bar is stocked with local craft beers and Icelandic spirits. There are bikes for rent to help you get around town, and pretty much everything inside is eco-friendly and sustainable.

The Eyja was also the first eco hotel in Iceland to be awarded the Green Globe certification. This level of sustainability is what all hotels should aspire to.

Nestled in the heart of Iceland's stunning Lake Mývatn region, Hótel Laxá is a beacon of eco-consciousness. Surrounded by rolling hills and the tranquil waters of the lake, it's the perfect eco hotel in Iceland for a stay in the north near some of the country's most volcanic scenery.

With a commitment to sustainability that is woven into its fabric, Hótel Laxá takes pride in being one of North Iceland's most eco-friendly hotels. The hotel's rooms offer guests a comfortable and inviting space to rest after a day of exploring the magnificent surroundings, including the nearby Mývatn Nature Baths, Dimmuborgir volcanic formations, and the Namafjall Hverir geothermal area.

Amenities such as organic bedding and low-flow showerheads serve as reminders of the hotel's dedication to preserving the planet. Experience the perfect balance of luxury and sustainability at Hótel Laxá, where you'll be able to connect with the breathtaking beauty of Iceland's Lake Mývatn region in a responsible and mindful way.

Nestled amidst the stunning landscapes of southern Iceland, Hotel Rangá beckons travelers in search of an escape that fuses luxury with a deep respect for nature. This premier eco-friendly hotel in Iceland offers a perfect union of contemporary comfort and environmental stewardship.

From its reliance on geothermal energy for heating and hot water to its souring of locally-grown ingredients for its restaurant, Hotel Rangá has made a strong commitment to reducing its impact on the environment. It has been recognized as part of the 'Considerate Collection', a small group of boutique hotels that go above and beyond in sustainability management.

Guests can bask in the spacious rooms and suites, featuring floor-to-ceiling windows that offer breathtaking views of the surrounding wilderness. Adventure awaits those willing to venture beyond the hotel's walls, with opportunities for stargazing, river rafting, and other outdoor experiences. Hotel Rangá is truly one of the most stunning eco hotels in Iceland.

Discover a hidden haven near the spellbinding Jökulsarlon glacier lagoon in Iceland, where luxury and the great outdoors intersect at Fosshotel Glacier Lagoon. This premier eco-friendly hotel in Iceland stands as a model of sustainable tourism, fusing contemporary comfort with a commitment to preserving the natural beauty of its surroundings.

Fosshotel Glacier Lagoon is a pioneer in responsible tourism, with energy-efficient design, a dedication to reducing waste and water usage, and sources as much food as possible from nearby local producers. Inside, be prepared to be mesmerized by the stunning views of the south coast, while the nearby glacier lagoon offers plenty of outdoor adventure.

Venture outside the hotel's walls to explore glaciers, kayak amidst floating icebergs, or simply relax in the hotel's hot tub and soak in the serene beauty of the surroundings. This eco hotel in Iceland will transport you to a world where luxury, sustainability, and the great outdoors all meet.

Located on the grassy fields northwest of the ice cap Eyjafjallajökull, Hotel Fljósthlíð is an extraordinary escape into Iceland’s countryside. This eco-friendly hotel is located on a family-run farm called Smáratún, and is quietly leading the charge for responsible tourism in Iceland. This sustainable hotel received its Nordic Swan Ecolabel back in 2014 – one of the very first to do so in the country.

Guests at this comfortable Icelandic eco hotel are welcome to explore the farm, filled with free-range sheep, cows, Icelandic horses, and more. The vegetables grown on the farm feature heavily in the restaurant menu, as do other local and sustainably sourced ingredients.

But the real winner? The owners of this farm have set up their own tree-planting initiative for guests to take part in. Those who want to are welcome to visit the surrounding fields, planting native birch trees to create windbreaks and offsetting their travel even further.

Back to Reykjavik again for another of the best eco-friendly hotels in Iceland. The recently opened Von Guldsmeden is the second hotel by the Guldsmeden group in Reykjavik. Located in the middle of Laugavegur, it’s perfect for responsible travellers who want to be in the busy downtown area.

Like its bigger sister Eyja (listed above), Von is furnished with the distinctive and sustainable furniture of the Guldsmeden group. Rooms are bright and airy with views towards the water, while the amenities again focus on local, organic products.

However, that’s where the similarities stop. Whereas the common areas in Hotel Eyja are bright and airy, Von channels a stormier and more wintery Iceland. Dark hues, leather-clad furniture, and even a sophisticated whiskey den all give this place a great atmosphere.

Wedged between glaciers, volcanoes, and rivers swarming towards coasts of black sand, Hotel Eldhestar is sustainability at its best. This working horse farm was one of the first hotels in the country to be awarded the Nordic Swan Ecolabel.

They’ve also adopted the initiative set up by the Energy Agency of Iceland, ‘Recharge in the Barnyard’, encouraging guests to rent electric vehicles and charge them up in the hotel parking area. It's a fantastic eco-hotel in Iceland and a great base for further explorations of the south coast.

Not trying out one of the famous horse tours here would be a big mistake. Since 1986 this company has offered wild horseback rides through Iceland, from half-day tours to epic jaunts through the highlands. The sustainable hotel restaurant serves up hearty meals for guests after a hard day’s ride, with all ingredients sourced from the surrounding farms and nearby fishermen.

For another taste of the idyllic life in the Icelandic countryside, the Hotel and Guesthouse Rauðaskriða in the northeast of the country is a winner. The farm hotel has always been run with sustainable principles in mind and was one of the first hotels in the country to earn itself the Nordic Swan Ecolabel. It’s by far the best eco-friendly hotel in Northeast Iceland.

Rooms are thoughtfully decorated with plush and comfortable furnishings – like the south, life in the north is pretty good. The owners also run their own wildlife tours like bird and whale watching.

Having such personal service in this volcanic region of the country is a pleasure, and a great opportunity to learn more about Iceland’s natural environment. This area is very much different from the south and the capital region. Nearby you can find the volcanic oasis of Lake Mývatn, one of the highlights of any trip to the country.

Rounding out this list is Loft Hostel in Reykjavik. This hostel has a strong commitment to sustainable travel, so you can be sure that staying here while in Reykjavik is a great way to lower the impact of your journey in Iceland.

Loft Hostel follows a range of sustainable principles, and has been certified by the Nordic Swan Ecolabel.

Located on the top floor of a building along Bankastræti in downtown Reykjavik, this hostel puts you smack bang in the middle of the action. It’s a lively hostel with a beautiful roof terrace where guests can enjoy a beer or two with a view. There's also a regular lineup of events each week, from trivia nights to karaoke. For a more affordable sustainable hotel in Iceland, Loft is a great choice.



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