Built in 1947 on the banks of Lake Mývatn, this intimate, family-run hotel exudes traditional charm despite its nondescript exterior. The nine country house–style rooms are simply furnished, with peach-and-orange walls, wood floors, and beds dressed in crisp white linens; higher-level rooms come with great views of the lake’s crystal-clear waters and compelling lava formations. On the ground floor, a lounge and breakfast room is served by friendly, helpful staff, making it difficult to leave. But on warm days you can sit at one of the outside tables and watch Icelandic horses graze nearby, visit the adjacent village, or explore the surreal landscapes and rich birdlife that mark this remote region.

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