Iceland's Rarest Rooms

· Travel team
Finding a place to sleep in Árneshreppur is a bit like finding a parking spot in a tiny village: there aren't many, and if you wait too long, someone else takes the good one. This is Iceland's least-populated municipality, where the Strandir coast operates on a handful of guesthouses, one historic hotel, and a whole lot of local hospitality.
If you're expecting room service and a fancy lobby, you've come to the wrong place. You're here for the silence, the mountain views, and the slightly surreal feeling of being somewhere almost nobody else visits. Because the rooms are so scarce, booking ahead in summer isn't a suggestion—it's a survival tactic.
Here are six places to stay, with the practical details you need.
Hótel Djúpavík
This is the closest thing to a destination stay in the area, and it comes with a story. The building was constructed in the 1930s as the women's dormitory for the herring factory next door, and it's been welcoming guests since 1985.
Rooms are vintage in style, many with shared bathrooms, and the wooden-beamed dining room serves homemade breakfast and dinner with local ingredients like pan-fried cod and lamb. There's free coffee and tea all day, and the lounge is the kind of place where you actually talk to other travelers. The old factory itself is next door, now a museum and occasional concert venue, which makes this a genuinely unique base for exploring the area.
Estimated Cost: Rooms have been listed from around US$175–180 per night in shoulder season, rising toward US$230–250 in busier periods.
Urdartindur Guesthouse and Cottages
If you want to stay closer to the northern end of the peninsula, this is your option. Urdartindur sits in Norðurfjörður, within reach of the Krossneslaug geothermal pool, and offers both guesthouse rooms and self-contained cottages. It's a practical base for exploring the coast, with free Wi-Fi and a reputation for cleanliness and location. The cottages give you a bit more space and privacy than a standard room, which matters if you're traveling with family or staying a few nights. It's also a good spot for watching the northern lights in winter, as the area has very little light pollution.
Estimated Cost: Rates have been listed from around US$95–100 per night depending on room type and season.
Hólmavík Guesthouse
If you're using Hólmavík as your supply stop before heading north, this is the friendly, family-run choice. It sits right on the harbor, next to the Museum of Icelandic Sorcery and Witchcraft, and the owner has a reputation for going above and beyond—one guest reported the owner personally drove a forgotten camera all the way to Reykjavík. Rooms are clean but small, some with shared bathrooms, and breakfast is included. It's a practical, welcoming base before the long gravel drive, and the harbor location makes for a pleasant evening walk.
Estimated Cost: Double rooms have been listed from around US$60–65 per night based on current exchange rates.
Steinhúsið Guesthouse
Also in Hólmavík, Steinhúsið is a beautifully restored house dating from 1911, and it markets itself as a base for exploring the remote Strandir region—including Árneshreppur. It's a smaller, character-filled alternative to the larger guesthouses, and the location puts you close to the village services you'll need before the long drive north. The building itself is part of the appeal, with original features that give it a sense of place you won't find in a modern hotel.
Estimated Cost: Pricing isn't widely published, but expect Hólmavík guesthouse rates in the US$70–120 per night range depending on room and season.
Malarhorn Guesthouse
A bit further south in Drangsnes, Malarhorn is another practical stop on the way to or from Árneshreppur. It's an ocean-side property with free Wi-Fi and parking, and guests consistently mention the location right on the water. It's not in Árneshreppur itself, but if you're breaking up the drive, it's a solid option with more amenities than the remote farm stays. Drangsnes also has its own geothermal hot pots right by the sea, which is a nice bonus after a long day of driving.
Estimated Cost: Rates have been listed from around US$95–100 per night.
Hotel Laugarhóll
Technically in Bjarnarfjörður, south of the Árneshreppur boundary, this hotel is worth mentioning because it comes with access to a 25-meter geothermal swimming pool, Gvendarlaug, and sits next to the Sorcerer's Cottage replica. If you want a soak after a long day on gravel roads and don't mind being a bit further south, it's a memorable stop. The pool alone makes it worth considering, especially if you're traveling with kids or just want to unwind.
Estimated Cost: Pricing varies by season, so check directly, but expect Westfjords hotel rates in the US$150–200 range.
Final Thoughts
Árneshreppur doesn't have a row of chain hotels. It has a handful of beds, most of them in historic buildings or family-run guesthouses, and they fill up fast in summer. Hótel Djúpavík is the standout for atmosphere and history. Urdartindur is the practical base near the hot pool. Hólmavík and Drangsnes give you more choice and easier access to supplies before the final push north. Book well ahead, bring cash for small stops, and don't expect late check-in or room service. The reward is waking up somewhere most travelers will never see.