The name is misleading: this large new four-star hotel sits halfway between Skaftafell and Jökulsárlón at Hnappavellir, about 3km east of the departure point for Ingólfshöfði tours. There are no lagoon views – Jökulsárlón is a 20-minute drive away. Opened in 2016, the hotel houses 104 simple but stylish rooms (with more under construction), plus a good restaurant and inviting bar area.
The restaurant (dinner mains 4180kr to 6990kr) offers high-quality local produce; there's also a more reasonably priced all-day bar menu.
The hotel's prices are steep but demand in this region is sky-high, so it pays to book early.