2 Best Hotels in Varmahlíð, North Iceland

Perched on a hilltop above the town center, this collection of cabins is beautifully decorated, and has all the amenities you need for a self-catering holiday. The delightful couple running Hestasport Cottages go above and beyond to make guests staying in their little village of adorable timber cabins happy. There’s also a lovely large stone communal hot tub in the center. Note that the cottages are in a different location to the Hestasport reception, where you check in.

Conveniently located just off the main road in the town center, this family-run hotel is an excellent base for exploring the region. Rooms are clean and bright, with modern soft furnishings and fabrics adding a splash of color to the slightly more dated standard hotel furniture. The hotel has an excellent restaurant and is a three-minute walk from the local swimming pool.