Harbour Inn Guesthouse, Westfjords

Harbour Inn Guesthouse is in the fishing village of Bíldudalur on the Arnarfjörður fjord, known in folklore for its numerous sea monsters. In fact, you can walk to the Icelandic Sea Monster Museum in just five minutes to learn more about the area's legends, as this peninsula is perhaps Iceland's most mythical and mystical. The more secluded Westfjords area is 5.5 hours from Reykjavík, so this location is ideal for those looking to escape the crowds while still experiencing the country's intense natural beauty, like the huge waterfall of Dynjandi, an hour and 15 minutes away. 

This family-run hotel has a mix of double and single rooms with private or shared bathrooms and two larger self-service studios. The style is modern, with some traditional touches like local textiles and blankets. Book a room with its own bathroom for a bit more privacy. The smaller studio can accommodate up to two, while the larger can sleep six to seven on two double beds, a single bed, and a bunk bed. The larger studio includes a small seating area, a kitchenette, and a dining table. While the hotel has no on-site restaurant, you can eat at one of the few places in the village, some of which are open year-round.