Review: Torfhus Retreat Iceland (Pricey, Mostly Charming, Unique Location)

Review: Torfhus Retreat Iceland (Pricey, Mostly Charming, Unique Location)

NAME: Torfhus Retreat
LOCATION: Selfoss, Iceland
DATE: October 2025
REVIEW RATING:
BEN SAYS: Torfhus Retreat has a unique location that's ideal for touring Iceland's Golden Circle. The hotel has pretty nice rooms with geothermal pools, and a surprisingly great dinner. However, it's a pricey property, and pretty low-touch when it comes to service.
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For the first hotel stay of our Iceland to The Residence via Cambodia trip, we spent a couple of nights at Torfhus Retreat, a hotel that’s conveniently located for touring the Golden Circle (which has many of Iceland’s most popular sites), but otherwise not close to a whole lot.

We enjoyed our stay at Torfhus Retreat, and loved the convenience of the location, the geothermal pools, and the great restaurant.

However, there are also some caveats to be aware of. For one, the property is expensive for what it is, but that’s not surprising, since we’re talking about Iceland. Beyond that, the property almost felt like a hybrid between a hotel and a home rental, in terms of the limited service and dining, lack of a gym or other amenities, etc.

In the end, we enjoyed our stay, and loved being so close to the sites, rather than having to start our day in Reykjavik. However, I wouldn’t really consider this to be a “destination hotel,” or anything. Let’s get into the review…

Booking the Torfhus Retreat Iceland

Unfortunately Torfhus Retreat doesn’t have any sort of an interesting points angle, so the only option is to pay cash (or redeem points as a cash equivalent toward the cost of the stay). Unfortunately the hotel doesn’t even belong to any program that offers extra perks (like Virtuoso), so there aren’t opportunities to get outsized value.

Over our dates in late October, the rate was €800 per night, and that included breakfast. That’s obviously a lot, but as mentioned, Iceland is very expensive, and this property has a unique location. If you’re looking to maximize value, there are two things worth mentioning:

  • The hotel often has a fourth night free promotion, so if you’re willing to stay that long, that lowers your nightly rate by 25%
  • Accommodations have either one bedroom or two bedrooms, and the accommodations with two bedrooms are typically only priced around 50% higher, so on a per-bedroom basis, that brings down the rate a bit compared to booking two rooms

Torfhus Retreat Iceland location

Torfhus Retreat is located in Iceland’s Golden Circle, near Selfoss, in south Iceland. You can expect that’s a roughly 120-minute drive to the hotel from Keflavik Airport, while it’s around a 90-minute drive from Reykjavik.

While Iceland’s roads are mostly in great condition, getting to the hotel is quite an adventure. It involves crossing a bridge that makes you momentarily wonder if you’re about to end up in big trouble. It then involves driving down a dirt road next to a wide open field with all kinds of animals.

Road to Torfhus Retreat
Road to Torfhus Retreat
Road to Torfhus Retreat

Then once you actually pull up to the hotel, there’s a gate, which can be opened by pushing the button that connects you to someone at the front desk.

Torfhus Retreat entrance

As you can immediately tell, the property has a theme — it’s described as being inspired by traditional Viking farms.

Torfhus Retreat main building entrance

You’ll want a car if staying here. In terms of the location, the main selling point is that you’re a short drive from many of the most popular sights along the Golden Circle, so you get easy access to attractions like Geysir and Gullfoss.

There really is a huge advantage to that, since it allows you to avoid visiting these places during peak times. Most people do day tours from Reykjavik to go around the Golden Circle, so it gets super busy in the middle of the day. It was awesome to be able to go on drives in the mornings and in the afternoons, and to take a break midday.

Torfhus Retreat is well positioned for the Golden Circle

I’ll have a separate post with my thoughts on Iceland and pictures from our adventures, as we really had an incredible time, and can’t wait to return.

Torfhus Retreat Iceland lobby & check-in

Torfhus Retreat is a pretty spread out property, as accommodations are in 15 different buildings. As you enter the property, you’ll see the biggest building just past the gate and to the right, which is where you’ll find the lobby, restaurant, and bar.

Torfhus Retreat lobby exterior

The whole decor is cozy — just look the entrance, once you step inside.

Torfhus Retreat lobby entryway

Inside the lobby, the reception desk is to the right, while there’s some seating to the left and straight ahead (which is made to look like a boat — or is simply the repurposing of an old boat?).

Torfhus Retreat lobby
Torfhus Retreat reception
Torfhus Retreat lobby seating
Torfhus Retreat lobby seating
Torfhus Retreat lobby seating
Torfhus Retreat lobby design

Very cute, eh? I’d describe the check-in experience as being pretty low-touch. The lady checking us in wasn’t rude, but I’d say we exchanged maybe a total of a couple of dozen words, and there wasn’t so much as a “welcome,” or anything like that.

Fortunately our room was ready, and we were then brought there (which came in the form of her driving ahead of us, and us following her in our car).

Torfhus Retreat Iceland guest room

Torfhus Retreat has 26 accommodations, spread across 16 different buildings. There’s one standalone four-bedroom villa, and 10 standalone two-bedroom villas, which are located further from reception, and on top of a small hill. Each has a private geothermal pool, so that’s a nice feature (the four-bedroom villa also has some extra features, like a private sauna).

Torfhus Retreat property

Then there are 15 one-bedroom suites, which are spread across five buildings, with each building containing three units. There’s one geothermal pool per building, so that means you potentially have to share it with up to two other rooms.

Torfhus Retreat property
Torfhus Retreat property

We were assigned the middle unit in the “Freyja” building. The nice thing is that the property was relatively empty during our stay (maybe two or three other rooms were occupied?), so we had this building all to ourselves, and that meant we also had a private geothermal pool.

Torfhus Retreat property

The one-bedroom suites are described as being 30 square meters (323 square feet), so these are more the size of standard hotel rooms, rather than anything else. Definitely manage your expectations in that regard.

The room featured an entryway with some open closet space immediately to the left, the living area straight ahead, and the bedroom area to the right.

Torfhus Retreat room entryway

The living area had a couch that could seat up to three people, facing a wall-mounted TV.

Torfhus Retreat room living area
Torfhus Retreat room living area
Torfhus Retreat room living area

Then across from that was a bed, which I must admit, was way too hard for my preferences (admittedly that’s often the case in Europe). There was some storage space underneath the bed, so that was the best place to leave suitcases during the stay, due to the lack of other closet space.

Torfhus Retreat room bedroom

There was also a minibar area back near the entrance, with everything being complimentary. This contained a Nespresso coffee machine, a tea selection, some beer, sparkling wine, and sparkling water.

Torfhus Retreat in-room minibar
Torfhus Retreat in-room coffee machine
Torfhus Retreat in-room minibar

The room also had a phone back near the entrance, along with a number so that you can set up a Northern Lights wake-up call. We were hoping to see the Northern Lights here, but unfortunately didn’t luck out. Funny enough, we got lucky at the other two hotels, which was exactly the opposite of how we were expecting things to play out.

Torfhus Retreat Northern Lights wake-up call

The bathroom was then back near the bedroom, and contained a sink, a toilet, and a walk-in shower. It was all pretty functional, with toiletries being in unbranded, reusable containers. The shower’s half glass shield meant that the bathroom easily got flooded while showering.

Torfhus Retreat room bathroom
Torfhus Retreat room shower
Torfhus Retreat room shower

Wi-Fi in the room was free and relatively fast, despite the property’s remote location, so that was much appreciated.

Without a doubt, the nicest part of this setup was the geothermally heated basalt stone hot pool out back, located out back. Think of it as being like a natural hot tub… how lovely! We enjoyed this each day, and it definitely elevated the experience.

I will say, this wouldn’t have been as nice if all three units in our building were occupied, both in terms of having to share this with others, and privacy. Fortunately it wasn’t a factor here, but that is otherwise a major advantage of booking a two-bedroom villa.

Torfhus Retreat geothermal pool
Torfhus Retreat geothermal pool

On our second day, we had a pretty wild snow storm, so the property looked totally different than it did upon arrival. Yowzers!

Torfhus Retreat snowstorm
Torfhus Retreat snowstorm
Torfhus Retreat snowstorm

Torfhus Retreat Iceland restaurant & bar

Torfhus Retreat has a restaurant and bar in the same building as the lobby, and it’s a charming space. It’s the only dining venue at the hotel, and it’s where breakfast, dinner, and drinks are served.

Just past the lobby is the bar area, which has seating for around a dozen people.

Torfhus Retreat bar area
Torfhus Retreat bar area
Torfhus Retreat bar area
Torfhus Retreat bar area
Torfhus Retreat bar area

There’s even an espresso machine, and guests can help themselves to complimentary coffee and tea throughout the day.

Torfhus Retreat bar area

The restaurant area is just past the bar, and consists of tables that are spread across two rooms.

Torfhus Retreat restaurant
Torfhus Retreat restaurant

Breakfast is included with all rates at the hotel, and is served daily from 7AM until 10:30AM. It consists of a buffet, and is definitely on the more basic side, though still pretty good quality.

Torfhus Retreat breakfast

The breakfast selection included cereal, yogurt, fresh fruit, cold cuts, cheese, pancakes, croissants, bread, scrambled eggs, and bacon, along with a couple of other things.

Torfhus Retreat breakfast
Torfhus Retreat breakfast
Torfhus Retreat breakfast
Torfhus Retreat breakfast
Torfhus Retreat breakfast

Coffee was also self-serve from the machine, and there was juice.

Torfhus Retreat breakfast

There wasn’t really any interaction between staff and guests during breakfast — it’s not like you’re offered anything, and they typically just cleared plates after guests left.

The hotel then serves dinner every evening from 6PM until 9PM. Officially, the hotel recommends that guests partake in the “three-course surprise menu,” which differs every day, and features fresh and regional products. We decided to go along with that one evening, and the price was €120 per person, with an optional wine pairing for €95 per person.

Torfhus Retreat restaurant

I’ve gotta be honest, I was worried that this meal wouldn’t be up my alley, since I’m not usually a huge fan of Nordic cuisine. However, I was very pleasantly surprised.

At the beginning fo the meal, we were offered sourdough bread with black garlic butter, which was delicious.

Torfhus Retreat dinner

The starter then consisted of smoked haddock soup with shellfish — it was also tasty, and I liked the presentation.

Torfhus Retreat dinner

After that, we were served cheese tartare, as it was described, featuring Icelandic cheeses, with Japanese mayo. While the meal was described as being three courses, I guess this was a bonus course.

Torfhus Retreat dinner

The main course was sole with yuzu vinaigrette, which I thought was exceptional.

Torfhus Retreat dinner

Lastly, we finished with dessert, which consisted of a strawberry tart with vanilla cream and milk ice cream. Ford thought the crust was store bought, but otherwise, it was great.

Torfhus Retreat dinner

The meal was excellent all-around. And while the wine pairing wasn’t cheap, they’ll gladly offer you as many refills as you’d like, which… isn’t something I’ve seen before for a wine pairing at a nice restaurant.

The three-course meal is officially the only thing that’s promoted at the restaurant, though I believe if you ask, they’ll also prepare you something else, if you prefer. There’s not any formal menu, though. This isn’t a property where you can order a pizza or club sandwich via room service, or anything like that.

When it comes to the bar setup, interestingly, the hotel only features Icelandic spirits, while it features an international selection of wine. I appreciate the concept of showcasing local products, though this greatly limits the types of cocktails they can prepare, given limits on the type of liquor that’s produced in Iceland.

Torfhus Retreat bar drinks

While I appreciate the concept, you’d think that they could complement the Icelandic options with international ones, when not available. For what it’s worth, below is what the cocktail list looked like.

Torfhus Retreat bar menu
Torfhus Retreat bar menu

Torfhus Retreat Iceland service

Icelandic people are no-nonsense, and service here reflects that. Service was very low-touch, and our interactions with staff were minimal. Like, half the time the reception desk wasn’t even staffed, so there was no one to greet guests as they came to breakfast, etc.

The only memorable service interaction we had was with the lovely woman who served us the night we had dinner at the hotel. She was from Spain, and was charming and friendly, with an interesting story (naturally, we were curious what made her decide to move to Iceland).

But yeah, you definitely don’t come here for the service otherwise…

Bottom line

We had a nice stay at Torfhus Retreat, though definitely come in with the right expectations. Yes, it’s super expensive for what’s offered, but this is Iceland, so that’s not really surprising. The property is also pretty low-touch when it comes to service, and almost feels like a cross between a hotel and a home rental setup.

That being said, all things considered, we had a good stay. This property had an excellent location for touring the Golden Circle, and we also loved having a geothermal pool out back, made all the better by it being “private” for us (due to not having neighbors). The dinner we had at the restaurant was also very tasty.

If you’re looking for a place to stay while touring the Golden Circle and can stomach the price, then I’d recommend this. A couple of other options to consider include Hotel Ranga (part of Hilton Honors, via the SLH partnership) and ION Adventure Hotel (part of Marriott Bonvoy, via the Design Hotels collaboration).

What’s your take on Torfhus Retreat Iceland?

Conversations (11)
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  1. Daniel from Finland Guest

    Okay, so you get a cramped basic two-star cabin and indifferent service for 800 euros. An easy pass. No wonder only two rooms were occupied.

  2. George Romey Guest

    Perfect for a late October or early November after having enough of South Florida heat. And spend four days sleeping 12 hours a night and lounging around a beautiful place with nowhere to be and nothing to do. Heaven.

  3. Ltl Guest

    Although not necessarily a good deal, there is a points angle - this is part of Mr. & Mrs. Smith so you can redeem Hyatt points. I think I paid 75k points per night which is admittedly a lot but I had something like 700k hyatt points at the time. Hyatt redemption values at MMS are not very good but if you have an excess of Hyatt points as I did it's an option

  4. PareToOptimal Guest

    Thanks for the blast from the past! My family and I spent 4 nights at Torfhus back in 2023 and loved it. One thing that they did for us is arrange for an Icelandic astronomy professor to come to our (2-BR) villa with a couple telescopes to do an evening of stargazing. Another night that old-school phone rang to let us know about some Northern Lights! Since you're out in the middle of nowhere, the...

    Thanks for the blast from the past! My family and I spent 4 nights at Torfhus back in 2023 and loved it. One thing that they did for us is arrange for an Icelandic astronomy professor to come to our (2-BR) villa with a couple telescopes to do an evening of stargazing. Another night that old-school phone rang to let us know about some Northern Lights! Since you're out in the middle of nowhere, the starry sky can be pretty amazing. So, service can be pretty light-touch but they will do some pretty special things if asked!

  5. PeteAU Guest

    This level of service suits me just fine. I dislike having staff constantly hovering around asking me if everything is ok. If I want something, I'll let you know.

  6. Chris Guest

    Well I would have preferred those very pale strawberries to have been omitted in favor of actual Icelandic offerings like bilberry and crowberry, especially in Autumn.

    Looks like the kind of place I’d enjoy just wandering around. At that price point, though, I doubt I’d ever stay there.

  7. 1990 Guest

    Question about the 'geothermal' water... did it smell (like rotten eggs)? Stayed at Lake Mývatn (north side of the island), and, oof, the water there was 'too much.'

    1. Ben Schlappig OMAAT

      @ 1990 -- Funny you mention that. I distinctly remember that smell from my visit to Iceland over a decade ago, but didn't encounter that smell once during this trip.

    2. 1990 Guest

      Impressive. They somehow managed to overcome the smell, like, as an island. LOL.

  8. pstm91 Diamond

    Great review! This was particularly fun to read as I had a big client booking there this past summer. I'd add that they also have "Torfvilla" - a 4 bedroom villa. When I booked it for my clients, it wasn't all that much more than their other villa but included a LOT more (private chef and all dinners being one of them), and it's much more private.
    It's definitely pricey for what it is, but as you point out, that's Iceland.

    1. Ben Schlappig OMAAT

      @ pstm91 -- Totally forgot about the four-bedroom villa, but just added that to the post. Thanks!

Featured Comments Most helpful comments ( as chosen by the OMAAT community ).

The comments on this page have not been provided, reviewed, approved or otherwise endorsed by any advertiser, and it is not an advertiser's responsibility to ensure posts and/or questions are answered.

Daniel from Finland Guest

Okay, so you get a cramped basic two-star cabin and indifferent service for 800 euros. An easy pass. No wonder only two rooms were occupied.

0
George Romey Guest

Perfect for a late October or early November after having enough of South Florida heat. And spend four days sleeping 12 hours a night and lounging around a beautiful place with nowhere to be and nothing to do. Heaven.

0
Ltl Guest

Although not necessarily a good deal, there is a points angle - this is part of Mr. & Mrs. Smith so you can redeem Hyatt points. I think I paid 75k points per night which is admittedly a lot but I had something like 700k hyatt points at the time. Hyatt redemption values at MMS are not very good but if you have an excess of Hyatt points as I did it's an option

0
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