Álfheimar has 32 motel-style units in long annexes (the only rooms in town with private bathrooms!). The timber-lined rooms have more atmosphere than the newer building, but all are spotless and well equipped. The affable owners are a font of local knowledge – they are part of Travel East Iceland; hiking tours and packages can be arranged.
There’s a restaurant (two/three courses 4800/6200kr; open 7pm to 9pm) open to all and offering the dish of the day from the fjord’s fishers and farmers.