This quirky designer hotel in Iceland’s capital epitomises Scandinavian elegance. The boutique hotel boasts of handsome 1960s-style furnishings and rugged wood accents. The hotel has an extensive DVD library, Jacuzzi, sauna, gym and a steam room. It even offers in-room spa treatments to all guests. All rooms are bedecked with flat screen TVs, iPod docks, mini bars, and DVD players. The bathrooms are stocked with luxurious Aveda products. Opt for a room overlooking the harbour for a memorable stay.

The communal areas at 101 Hotel exhibit the work of upcoming local artists and showcase Icelandic talent. This lends it an edge that is hard to beat. The in-house bar and restaurant are casual yet uber-trendy. The spa is slick and achingly cool. 101 Hotel manages to be hip, cool and modern all at once. We’re besotted with it—highly recommended.