A newcomer to the area, Lilja has a striking, modern building housing smart 'delux' rooms – some with fab glacier views – plus an older building that houses smaller, cheaper rooms (but still with private bathroom). Service is sweet, and there's a quality on-site dining option with a well-priced menu ranging from lobster sandwiches to house-smoked lamb (meals 1290kr to 2990kr).
Lilja Guesthouse
Southeast Iceland