Milk Factory, Höfn

Milk Factory offers a simple and comfortable stay just outside of Höfn, a fishing town on a peninsula just below the Vatnajökull ice cap, the second largest in Europe. The center of town is just a 15-minute walk or 2-minute drive, and there you'll find a mix of good quality restaurants. Seafood lovers will enjoy themselves, and if you visit in July, be sure to catch the lobster festival. Enjoy convenient access to some of southeast Iceland's biggest attractions, like the diamond beach of Jökulsárlón, just over an hour away, and Skaftafell nature reserve, just under two hours away.

This former dairy is now a small hotel with around 15 rooms with twin and/or double beds. The split-level family rooms can sleep up to four on two twin beds and a queen. All rooms are basic, with neutral tones and minimal furniture. Double and twin rooms may include mountain views; if you're lucky, you might spot some horses running in the fields outside. The bathrooms offer a touch of style with white tiles and rainfall shower heads. The main common facility is the breakfast area, and the center of Höfn is close enough that you won't be without different food options.