Located on the breathtaking Snæfellsnes Peninsula, a couple of hours north of Reykjavík, Hótel Búðir has been operating since the 1940s and is one of the best places to stay in the region—as well as one of the best places to dine. The restaurant is simply decorated with wooden tables and chairs, lace curtains, traditional paintings, and—the main draw aesthetically—huge windows that look out onto the magnificent landscapes of the peninsula. Framed in those windows are moss-covered lava fields, the glistening ocean, and the Snæfellsjökull glacier itself. The gourmet menu focuses on local goods: fresh fish and meat (lamb, veal) from nearby farms, with fresh, seasonal vegetables. Staff are welcoming and always happy to guide you through the very decent wine and cocktail lists.