Fjalladýrð is the name of the tourist service at Möðrudalur farm, and it has a wide array of excellent accommodation spread over various buildings and budgets: camping, sleeping-bag beds (7800kr), guesthouse rooms, button-cute turf-roofed cottages (45,000kr), family-sized suites, and luxe, brand-new en suite rooms (which include a lavish breakfast) with peaceful views of Herðubreið. Outside summer, rates drop by around 30%.
It’s worth spending the night if you’re interested in tackling some of Iceland’s interior – Fjalladýrð runs excellent super-Jeep trips to Askja and Kverkfjöll.