I wasn’t expecting many surprises from Longyearbyen, the world’s northernmost permanent settlement, founded around coal mining in the early 20th century. And I certainly wasn’t expecting to find myself staying in such a glorious small hotel. Funken Lodge, perched high on Haugen Hill between the centre and New Town, turned out to be a really delightful place to stay.
I arrived in June, prepared for the midnight sun and armed with an eye mask after watching too many Scandi thrillers, and reading online reviews of sleepless nights. Staying at Funken Lodge, I needn’t have worried.
Funken Lodge

Funken Lodge is owned by Hurtigruten Svalbard, a separate company from the cruise line, focusing solely on exploring Svalbard. They took over the property in 2017. The building itself dates back to the 1940s when it was developed to house the coal company’s administrative staff and miners. The reception building, ‘Funktionærmessa’ was often shortened to ‘Funken’ giving the lodge its name.
In 1953, tragedy struck when an avalanche flattened the site. The building has been restored and adapted several times over the years, but its distinctive red exterior remains a constant.
From the outside, it still looks modest, but inside it has been transformed into a stylish boutique hotel. The interiors are full of Arctic character, the dark colour palette on the walls given warmth by clever use of light, and pattern and texture creating interest.
Check-in was smooth, our key waiting in an envelope with our name and room number. In Svalbard, etiquette dictates that you remove your shoes at the door, a tradition that dates back to the coal mining era (when it helped stop coal dust spreading) so wear good socks, and maybe pack some sliders or slippers to change in to. There is a boot room for outdoor shoes.

Once all the formalities were complete, we padded down a long corridor in our socks past the small gym, to our room…
Rooms

Guest rooms are cosy and well thought-out, decorated in dark woods and earthy tones with splashes of emerald green. Standard rooms are compact, with large windows to maximise the Arctic light and reassuringly thick blackout blinds to ensure you still get a good night’s sleep.
Despite their size – which helps keep them snug – they’re well equipped, with comfortable beds, contemporary bathrooms with rain showers, heated floors, and some lovely soft furnishings. Our room on the ground floor overlooked the entrance driveway, while the children’s rooms upstairs looked towards the mountains. Superior rooms are a similar size to standard (16–18m²) but offer better views, while suites (27–32m²) are larger with the best outlooks.
Dining

The in-house restaurant, Funktionærmessen, is one of the best in Longyearbyen. It’s a smart, formal dining space with panoramic views over Longyearbyen, Adventfjorden, and the surrounding mountains. The menu blends Nordic and international influences, showcasing local ingredients such as Arctic char and reindeer.
I didn’t take a photo but it’s a striking space, perfect for lingering over a long lunch or dinner.
Breakfast was excellent quality, and my favourite dining experience at the lodge. There was a generous buffet of yoghurt, fruit, breads and pastries, smoked salmon, cereal, juices, tea and coffee, and cooked-to-order dishes from the menu.
Lunch and dinner were more refined, with less choice.
For lunch, we sat at a round table by the window with those sweeping views and were served a set menu of roast chicken with vegetables. After such an amazing breakfast I would have been very happy with something lighter to be honest.
Dinner was particularly elegant. The delicious hot buttered toast which arrived as an appetiser got devoured. This was followed by venison on a butternut squash puree with roasted peppers. Dessert was berries with a fruit compote, white chocolate mousse, garnished with chocolate sponge and meringue.

For dinner we sat in a booth, with atmospheric low lighting and a sense of intimacy.
The lodge also has an impressive champagne and wine cellar, Nordpolet. Historically, this was Svalbard’s first alcohol store, though with house wine at around £14 a glass, we didn’t explore the wine menu.
Location

Funken Lodge isn’t on the waterfront but sits above Longyearbyen, about a 15-minute walk from the centre. Its position makes it feel pleasantly removed from the bustle, but shops, museums, and the harbour are all close at hand. Most activity operators collect guests directly from the hotel for excursions by boat, snowmobile, or dog sled.
After dinner, we strolled down to the waterfront in the lingering Arctic light, and the following morning walked in the opposite direction uphill towards New Town.

Sustainability
Svalbard is a fragile environment, and the hotel operates with awareness of its impact. Energy efficiency, local suppliers, and partnerships with tour operators are all part of its ethos. Guests are encouraged to explore responsibly, using the lodge as a comfortable base rather than a substitute for experiencing the Arctic outdoors.
Verdict
Funken Lodge combines Svalbard’s history with modern Scandi style. It feels rooted in place yet offers warmth, comfort, and excellent dining. For those beginning or ending an expedition cruise – or simply exploring Longyearbyen – it’s a fabulous choice.
With thanks to Hurtigruten Svalbard for the complimentary upgrade to Funken Lodge.