One of the biggest decisions when planning an Iceland South Coast road trip is where to stay.
Most travelers choose Reykjavík or Vík and spend hours driving each day. While that approach works, it also means less time enjoying Iceland's incredible landscapes.
During our January road trip through Iceland, we chose to stay at Fosshotel Glacier Lagoon, and it ended up being one of the highlights of our journey.
Perfectly positioned between Vík and Jökulsárlón, this modern hotel offered the comfort, convenience, and atmosphere we were hoping for after a full day of exploring Iceland's rugged winter landscapes.
If you're wondering whether Fosshotel Glacier Lagoon is worth the cost, here's our honest firsthand review.
Quick Overview
Location: South Coast of Iceland
Best For:
- Glacier cave tours
- South Coast road trips
- Couples
- Winter travelers
- Northern Lights seekers
Would We Stay Again?
Absolutely.
It combined a luxury feel with one of the best locations on Iceland's South Coast.
Location: One of the Hotel's Biggest Strengths
Location is everything when planning an Iceland winter itinerary.
Rather than spending another long evening driving back toward Reykjavík, Fosshotel Glacier Lagoon places you close to many of Iceland's most spectacular attractions.
Nearby you'll find:
- Glacier cave tour meeting locations
- Diamond Beach
- Vatnajökull National Park
- Skaftafell
- Numerous waterfalls and scenic viewpoints
This allowed us to enjoy dinner, relax, and wake up refreshed for our glacier cave excursion the following morning instead of spending several additional hours on the road.
For travelers wanting to experience Iceland rather than simply drive through it, that extra time is incredibly valuable.
First Impressions
Driving toward the hotel, you'll notice how isolated the property feels.
There are no busy towns nearby.
Instead, dramatic mountains, lava fields, and open landscapes surround the hotel in every direction.
The modern Scandinavian architecture blends beautifully into its surroundings.
Inside, the atmosphere immediately feels warm and welcoming.
Natural wood, clean lines, large windows, and contemporary Icelandic design create an upscale yet comfortable environment.
After spending the day exploring waterfalls and black sand beaches in freezing temperatures, stepping into the lobby felt like arriving at a luxury mountain retreat.
The Rooms
Our room was modern, spacious, and thoughtfully designed.
Large windows allowed us to enjoy the surrounding scenery while remaining warm and comfortable indoors.
Highlights included:
- Comfortable beds
- Heated bathroom floors
- Excellent shower
- Modern furnishings
- Plenty of storage
- Quiet atmosphere
Everything felt clean, well maintained, and intentionally designed for travelers returning from outdoor adventures.
One feature I particularly appreciated was how peaceful the property became during the evening.
After a full day of sightseeing, it was exactly the relaxing environment we needed.
Dining
One pleasant surprise was the hotel's restaurant.
Because the hotel sits away from larger towns, you'll likely dine onsite.
Fortunately, that's not a compromise.
The restaurant serves locally inspired dishes featuring Icelandic ingredients in an elegant setting.
The presentation and quality exceeded my expectations.
Breakfast the following morning was another highlight.
A generous buffet provided everything needed before heading out for another day of exploring.
When you're preparing for hours outdoors in winter conditions, having a substantial breakfast included is a significant advantage.
Amenities
Fosshotel Glacier Lagoon isn't a resort with endless activities.
Instead, it focuses on doing the essentials exceptionally well.
Amenities include:
- Sauna
- Fitness room
- Comfortable lounge areas
- Restaurant and bar
- Free parking
- Wi-Fi
One of my favorite touches was the Northern Lights wake-up service.
Guests can request to be notified if the aurora becomes visible overnight.
There's something exciting about knowing you could receive a late-night call inviting you outside to witness one of nature's greatest spectacles.
Perfect Base for Glacier Cave Tours
One of the primary reasons we selected this hotel was its proximity to our glacier cave excursion.
Rather than waking before sunrise for several hours of driving, we enjoyed breakfast, made a short drive, and arrived relaxed and ready for our adventure.
That convenience alone made the hotel worthwhile.
The glacier cave tour became one of the most memorable experiences of our trip, and staying nearby allowed us to fully enjoy it without feeling rushed.
Diamond Beach Is Just a Short Drive Away
After completing our glacier cave tour, we headed to nearby Diamond Beach.
Watching crystal-clear ice wash ashore against Iceland's famous black sand was unlike anything I'd ever seen.
Because the hotel is so conveniently located, it made visiting both attractions in a single day simple and stress-free.
Is It Worth Paying More?
Compared with accommodations in Reykjavík or Vík, Fosshotel Glacier Lagoon may initially seem expensive.
However, consider what you're actually saving.
Less driving.
More sleep.
Less stress.
More time exploring Iceland.
When you factor in fuel, additional driving hours, and overall convenience, the value becomes much easier to appreciate.
For us, the location alone justified the investment.
Who Should Stay Here?
I would confidently recommend Fosshotel Glacier Lagoon for:
✔ Couples seeking a premium experience
✔ Travelers taking glacier cave tours
✔ Anyone driving Iceland's South Coast
✔ Winter visitors hoping to maximize daylight hours
✔ Travelers who appreciate modern accommodations in spectacular natural settings
If your priority is nightlife or walking to restaurants, this probably isn't the best fit.
But if your goal is immersing yourself in Iceland's landscapes, it's difficult to beat.
What Could Be Better?
No hotel is perfect.
Because of its remote location, dining options are limited to the hotel restaurant unless you're willing to drive.
Additionally, travelers looking for extensive spa facilities won't find them here.
That said, neither issue detracted from our overall experience.
The hotel's location is precisely what makes it so special.
Our Final Verdict
Would we stay at Fosshotel Glacier Lagoon again?
Without hesitation.
It offered exactly what we wanted from an Iceland hotel:
- Exceptional location
- Comfortable accommodations
- Excellent restaurant
- Quiet atmosphere
- Easy access to Iceland's most iconic winter experiences
For travelers planning a South Coast itinerary, I believe it's one of the best places to stay between Vík and Jökulsárlón.
Final Thoughts
Hotels should do more than provide a place to sleep.
They should enhance your travel experience.
Fosshotel Glacier Lagoon did exactly that.
Its thoughtful design, exceptional location, and peaceful atmosphere allowed us to spend less time driving and more time experiencing Iceland.
At Go Right Travel, we believe every hotel should support the journey, not simply fill a night on the itinerary.
Whether you're planning an Iceland winter adventure or another bucket-list destination, we'll help you choose accommodations that complement the experiences you're seeking.
Ready to experience Iceland?
Let's design an unforgettable itinerary that includes the right hotels, unforgettable excursions, and experiences you'll remember long after you return home.
Visit our Plan Your Trip page to start planning your Iceland adventure today.