Hidden Gems: Iceland’s Unique Stays, Spas, and Scenic Views

By any measure, Iceland is a small nation. The population has yet to surpass 400,000 and the entire island can be circumnavigated by car in less than 20 hours. Yet, its size does not convey the extraordinary breadth of offerings awaiting visitors. Many people travel to this Nordic country in search of the northern lights, a summer where the sun never sets, or a dramatic landscape of glaciers, volcanoes and waterfalls.

(Photo: Courtesy Sky Lagoon)

A core component of Icelandic culture, communal bathing is a time to power down smartphones and immerse in soothing waters and a sense of togetherness. While most Icelanders take twice- or thrice-weekly swims in their neighbourhood’s public pool, Sky Lagoon elevates the experience with its spa-like setting. It evokes Iceland’s landscape with its craggy boulders and clear waters. Over two or three hours, guests can partake in the seven-step Skjól ritual, including dips in the geothermal infinity pool and cold plunge, plus moments to relax in the saunas, cold-mist room and steam room. The experience is rounded out with a full-body sea salt scrub and a dose of saft—an elixir made from antioxidant-rich crowberries.

Tides

(Photos: Sam Harris, courtesy Tides)

Tides restaurant at The Reykjavík Edition hotel is a hotspot with views over the Old Harbour. The Nordic-style cuisine centres on locally sourced meat and seafood, such as Westfjords cod in a miso, roasted paprika, buttermilk and lime sauce, the handmade lobster ravioli, or the grass-fed Icelandic lamb fillet with sauerkraut and rhubarb, a common local ingredient. Nab a spot looking out over the water or in toward the multi-wall wine fridge and indulge in the four-course tasting menu, which starts with Icelandic tomato sorbet and ends with Basque cheesecake made with skyr, a yogurt-like Icelandic soft cheese.

Ölverk

(Photos: Andrea Karr (left), courtesy Ölverk (right))

Venture beyond the capital to Hveragerði, a South Iceland town sustained entirely by geothermal energy. There, you’ll discover Ölverk, a cozy brewery where craft beers are paired with wood-fired pizzas topped with inventive ingredients—from Icelandic dulse and banana to brie and walnuts. The brewery’s distinctive, small-batch beers are crafted on-site and available to take home, including the Skyr Sour, enriched with a hint of traditional Icelandic skyr. Also worth a try is their house-made hot sauces, made with peppers grown in nearby geothermal greenhouses; take home a bottle as a memento. Plan a visit in October to experience the annual beer festival hosted on-site.

Panorama Glass Lodge

(Photo: Courtesy Panorama Glass Lodge)

To get a sense of Iceland’s expansive vistas and ever-changing skies, reserve a stay at one of Panorama Glass Lodge’s two rural sanctuaries: Hella in South Iceland or near Bogarnes in the west. At each destination, steel-and-glass houses are perched on wide swathes of land and spaced apart for privacy. In the south, visitors have views of Hekla, an active volcano, as well as the highlands and Selsudslaekur river. In the west, they look out over the glittering ocean and the Snaefellsjökull volcano. Glass walls and ceilings allow guests to observe the aurora borealis or the midnight sun—two of the country’s most powerful attractions—all without leaving the comfort of their crisp white sheets.

Marshallhúsið

Through Thick and Thin, Dýrfinna Benita Basalan and Melanie Ubaldo, Nýló (Photo: Sisters Lumière)

Marshallhúsið, also known as Marshall House, is a former herring factory in the harbour district that has been repurposed into a contemporary art hub. It’s home to several galleries, including Nýló, or the “Living Art Museum,” as well as artist-run exhibition space Kling & Bang, and the studio of Ólafur Elíasson, an Icelandic-Danish artist famed for his large-scale installations. From Wednesday to Sunday, devote an afternoon to wandering the building, starting with lunch at the on-site Italian restaurant La Primavera, then allowing a couple of hours for a walkthrough of the temporary exhibitions open that month. One recent show at Nýló was Through Thick and Thin (pictured above), which explored love, heartbreak and grief through a series of drawings, watercolours, writings and installations. Another group show at Kling & Bang asked nine young Icelandic artists to respond to the madness of contemporary life through works of art.

Sandholt

     

(Photos: Courtesy Sandholt)

Sandholt is helmed by fourth-generation baker Ásgeir Sandholt and is the second-oldest bakery in Iceland. After studying abroad, Sandholt returned home and introduced breads and pastries that used sourdough in place of commercial yeast. He also reduced the sugar in his desserts, such as his chocolate mousse, which was a hard sell at first due to the Icelandic sweet tooth. Now, the locals are converts and the bakery has a bustling café where patrons can linger over Icelandic moss black tea and hearty breakfasts such as the shakshuka with sourdough bread. The kleinur, or twisted, fried pastries, are a bestseller.

Farmers & Friends

(Photo: Courtesy Farmers & Friends)

Stock up on souvenirs at Farmers & Friends, where the atmosphere feels quintessentially Icelandic: earthy, eclectic and warmly inviting. The boutique has two Reykjavík locations: one on Laugavegur, just across from Sandholt, and another opposite Marshallhúsið. Inside, vintage furnishings display the shop’s own clothing label, Farmers Market, complemented by boots, bags, Icelandic music, art, and other thoughtfully curated finds. The classic lopapeysa sweater remains a must-have, though those sensitive to traditional Icelandic wool will appreciate the softer alpaca-blend alternatives.