Fosshótel Vatnajökull

This upmarket chain hotel, 14km northwest of Höfn, recently grew from 26 to 66 rooms. The modern timber-and-concrete extension was smartly done, with blue-and-grey hues that represent the impressive natural surrounds. Older rooms received a welcome makeover too, but the newer deluxe rooms are a nicer pick. There's a restaurant (dinner mains 3200kr to 6500kr) on-site.