If past trips to Iceland have focused on Reykjavik and nearby sites such as the steamy waters of the Retreat at Blue Lagoon, you may not be familiar with this iconic destination’s other hotel address: Highland Base Kerlingarfjöll, centrally located in an isolated mountain range in the country’s mountain region. It was named for a mythical giantess transformed to stone by the rays of the rising sun, and the resulting 82-foot pillar of volcanic rock still stands as both a reminder of the sun’s might and a powerful argument for sleeping late.

The Hveradalir Valley is the remarkable setting for the hotel, opened during the summer of 2023 at the site of the former Kerlingarfj Mountain Resort. Translated, Hveradalir means “Valley of Hot Springs,” and that’s precisely what you’ll find. The astonishing landscape is dotted with pools of bubbling mud, hot springs and vibrantly colored slopes of rock.

Accommodations feature a minimalist décor, and range from rustic to luxurious. Options include six private lodges, a 20-room hostel, seven huts, a 28-room hotel and an expansive campsite.

Underground tunnels connect Highland Base Hotel to the restaurant and baths. There’s an 80-seat restaurant with a menu of innovative Icelandic fare. The property’s highlight? Private geothermal baths made up of three connected “hot pots” where guests can soak beneath the Midnight Sun.

For fun, there’s e-biking, skiing, snowmobiling and a variety of hiking trails that range in challenge. In winter, enjoy stargazing sessions through a high-powered telescope, or settle in for an evening of cocktails and storytelling in the lounge. Access to Highland Base is manageable by car, bus and private transfer during summer. After that, you’ll need a professional driver with a vehicle equipped to handle extreme weather conditions and unpaved roads.