Skip to main content

The Manual may earn a commission when you buy through links on our site.

Hide Away in these 4 Awesome Iceland Vacation Cottages

iceland vacation
Image used with permission by copyright holder

Iceland has fast become the go-to destination for Americans seeking out-of-this-world experiences on a budget. The capital Reykjavik is a worthy stop in its own right, but plenty of outdoor adventure awaits beyond the city limits. Here are four of Iceland’s most stunning, rural vacation cottages.

Panorama Glass Lodge

Panorama Glass Lodge
Image used with permission by copyright holder

We won’t bury the lead. The one-of-a-kind room at Iceland’s Panorama Glass Lodge offers views that are literally jaw-dropping. The luxury glass cabin is perched on a bluff overlooking the sea in West Iceland. Here, travelers can enjoy all the comforts of home, including a fully equipped kitchen, a private bathroom with a rain showerhead, a dining area, Wi-Fi, and a private outdoor tub. If that isn’t enough, there’s even a glass-enclosed bedroom where there’s always a good chance of spotting the Northern Lights from your bed. Worthy nearby attractions include hiking at Mt. Esja, the Glymur waterfall, and the viewing platform at Staupasteinn.

Recommended Videos

Mjóeyri Cottages

Mjóeyri Cottages
Image used with permission by copyright holder

Travelers looking to escape the tourist crowds of western Iceland need only head to the opposite side of the relatively tiny island. The country’s east coast is rugged, less traveled, and offers some of its most diverse wildlife watching. Overlooking the Reyðarfjörður fjord, adjacent the rural town of Eskifjörður, the five rustic Mjóeyri Cottages are perfectly situated to explore it all. For outdoor-lovers, it’s an ideal spot for trekking some of Iceland’s most stunning natural wonders. The country’s largest forest, the 740-square-kilometer (286-square-mile) Hallormsstaðaskógur, beautiful lake Lagarfljót, and the region’s largest settlement, Egilsstaðir, are all within a short drive.

Fönnin Cottage

Fönnin Cottage
Image used with permission by copyright holder

If eastern Iceland isn’t remote enough for you, head north. Iceland’s northern reaches are the most remote of anywhere on the island — it’s an area truly off the beaten path. The region is home to Europe’s most powerful waterfall, Dettifoss; fantastic seal-watching along the Vatnsnes Peninsula; and whale-watching at Húsavík. Fönnin Cottage is a stocked vacation rental smack in the middle of it all. While you’re unlikely to want to spend much time indoors, the cottage offers plenty of creature comforts. There’s sleeping for four, a proper bathroom and shower, a full kitchen, and a living area. Outside is a wraparound deck with a barbecue kit, a hammock, a hot tub, and miles of stunning views.

Artist’s Tiny Cottage

Image used with permission by copyright holder

For sheer charm, it’s hard to beat this tiny artist’s cottage. The 344-square-foot, one-room structure features all the essentials: a sleeping loft, a compact kitchen, and a comfortable living area. But — as with all things in Iceland —the real draw is what’s outside. A tiny wraparound porch overlooks a blissfully remote hillside landscape with views of the Hekla volcano. It’s well situated for exploring the island’s southern reaches. Given the near-zero light pollution and its fully exposed location, it’s also an excellent spot for watching the Northern Lights.

Mike Richard
Mike Richard has traveled the world since 2008. He's kayaked in Antarctica, tracked endangered African wild dogs in South…
Southwest starts booking assigned seats: What flyers should expect
Southwest Airlines plane

Today, Southwest began booking assigned seats, marking a major change from its open seating policy. Flights with assigned seating start in January 2026, and travelers have several seat preferences to choose from. The new strategy is twofold: it gives passengers greater flexibility while also enhancing the company’s profits. Here’s what to expect.

Southwest goes from free-for-all to assigned seating

Read more
Experience the 2025 US Open with The Ritz-Carlton’s new tennis travel package
Stay steps from Central Park for the 2025 US Open
The Ritz-Carlton New York, Central Park

Tennis fans heading to New York for the 2025 US Open can now elevate their stay with The Ritz-Carlton New York, Central Park’s new “Game, Set, Match” package, an exclusive offering that combines luxury hospitality with the thrill of Grand Slam tennis.

Available for stays from August 22 through September 8, the thoughtfully curated package places guests just steps from iconic Central Park and includes a range of high-end amenities designed to enhance the US Open experience.

Read more
Il Sereno’s new suite brings Japan’s jazz-kissa culture to Lake Como
Redefining luxury with sound at Il Sereno
Il Sereno listening suite

Il Sereno, an award-winning modernist retreat on Lake Como, has just announced a groundbreaking experience for music lovers. The new experience, The Darsena Listening Suite, features a one-of-a-kind lakefront suite that is redefining luxury with sound. Inspired by Japanese jazz-kissa culture and the quiet-listening culture resonating globally, this innovative suite features state-of-the-art analog equipment designed to offer a singular sensory journey where music isn't the background—it's the main event. The concept for the Darsena Listening Suite was conceived by hotel owner and audiophile Luis Contreras in collaboration with famed designer Patricia Urquiola.

Guests staying in this lakefront sanctuary will have a redefined travel experience, enjoying a personal yet immersive offering. Inside the suite are Klipsch La Scala loudspeakers, a McIntosh tube pre-amp and amplifier, a Thorens turntable, and a meticulously rebuilt Revox reel-to-reel deck. Of course, the musical experience would not be complete without over 500 vinyl records to choose from. The Darsena Listening Suite draws upon the concept of Tokyo’s jazz-kissa listening cafés, offering the first hotel guestroom anywhere that is entirely designed upon the act of "listening". To personalize the experience, guests can request favorite albums in advance of their stay, as records join the library for future stays.

Read more