South Iceland's hospitality scene has a new player: 360 Hotel, a 31-room family-owned retreat near Selfoss, opened its doors this month. The property is the first in Iceland to join Preferred Hotels & Resorts, a move that signals growing international interest in Iceland's luxury boutique segment.
Situated roughly an hour's drive from Reykjavík, the hotel positions itself as a base for exploring the Golden Circle and the South Coast, two of Iceland's most-visited itineraries. But the owners are keen to position the property as a destination in itself, not just a launchpad for sightseeing.
"360 Hotel is, first and foremost, a family-owned hotel," said owner Hrefna Bachmann. "We wanted to create the kind of place we would want to come home to." That sentiment is reflected in the design, led by Icelandic interior designer Guðbjörg Anna Árnadóttir, who drew on local traditions with natural materials, warm textures, and handcrafted details such as Moroccan wool rugs and handmade pottery. Each of the 31 rooms has its own character, a deliberate move to avoid the cookie-cutter feel of chain properties.
Geothermal wellness and aurora wake-up calls
The hotel's wellness offering centers on a geothermal sanctuary, tapping into Iceland's abundant natural hot water. Guests can also sign up for a Northern Lights wake-up service: when the aurora borealis appears, staff alert guests so they can step outside or view the display from their rooms. It's a practical touch for travelers who want to catch the phenomenon without camping out in the cold.
Dining is handled by Hnaus Restaurant, led by Executive Chef Hinrik Örn Lárusson. The menu follows a farm-to-fork philosophy, using local and seasonal ingredients that change with the seasons. "We want to showcase what South Iceland's farms and waters produce," Lárusson said. "The menu is a reflection of the landscape."
The property also leans into Iceland's tradition of cozy indoor evenings, offering board games and a curated library for guests who prefer a quiet night in. It's a subtle nod to the country's long winter nights and a differentiator for travelers seeking a slower pace.
The opening comes as Iceland's tourism sector continues to rebound, with visitor numbers approaching pre-pandemic levels. For travel professionals, the addition of a Preferred Hotels & Resorts property in South Iceland expands options for clients seeking upscale, authentic experiences outside the capital. The hotel's location near Selfoss also makes it a practical stop for self-drive tours along the South Coast, a route that has grown in popularity among independent travelers.
360 Hotel joins a wave of recent boutique openings in Iceland, but its family-run ethos and focus on geothermal wellness set it apart. As one of the few luxury properties in the region, it could become a key player for agents building bespoke Iceland itineraries.
For those planning trips, the hotel's proximity to Reykjavík and the Golden Circle makes it an easy add-on to a capital city stay. And with the aurora wake-up service, it offers a unique selling point for winter travel.
