Winning hearts with its beautiful design, peaceful surrounds and friendly staff, this intimate new hotel is a gem. It's just a few kilometres south of Klaustur on Rte 204, by a lake and looking onto lush views. Individual turf-roofed chalets (named for volcanoes) are an ode to good taste, and each features a fridge, coffee machine and bluetooth speaker, plus a patio.
There's a stylish on-site bistro for guests.