Búðarhólshverfi accommodation from AU$163

This is the most charming place ever. The owner, Anna, responded quickly to my emails and when she checked us in she was friendly and efficient AND had baked a cake and cookies that guests were welcome to. The communal area had games, books, and random food on offer. It felt very wholesome. Our room was adorable with a small kitchen (mid size fridge, stove, microwave, toaster). We controlled the heat and were able to keep our room very warm. The 2 dogs greeted us every morning on our private porch and seemed so happy. The hotel/cabins are at the foot of a mountain/waterfall and its so beautiful people driving by stop to take pictures. Across the road is an inlet. Its a bit remote so plan to get groceries before you arrive. This was a good base for going to Westman Islands, the Lava Center, Black Sand Beach and several waterfalls. They also have an Elf village and an outdoor hot tub. We used it both nights and it was heaven. Everything is just so and lovely. I wish I could stay there again.

Such a unique living experience. Living in an own personal hut near the mountains is such a great way to be in the nature. Private parking available. There is limited hot water in the room but this is a given when living more off the grid.

They have an atrium area for seating inside to watch the Northern Lights and have outdoor hot tubs for the same.