Built in 1947, this intimate, family-run hotel has an enviable location right on the banks of the striking Lake Mývatn in the northeast of Iceland. Despite looking fairly nondescript from the outside, Hotel Reykjahlid exudes a traditional charm enhanced by the friendly, helpful staff. The nine country-house-style rooms are simply furnished, with peach-and-orange walls, wooden floors, and beds dressed in crisp white linens; the higher level rooms come with great views of the lake’s crystal-clear waters, birdlife, and compelling lava formations. The hotel also has a lounge and breakfast room on the ground floor, where guests will find Internet and TV facilities. On warm days it's possible to sit at one of the outside tables and watch the Icelandic horses graze at the lake, visit the adjacent village, or explore the surreal landscapes and rich birdlife that mark this unique region.