What started as farmhouse accommodation has grown into a sprawling 65-room hotel on scenic farmland 5km south of Klaustur on Rte 204. As well as comfortable (but extremely pricey) hotel rooms, there are 15 tiny, self-contained cottages (sold online as Efri-Vík Bungalows, and cheaper than the rooms), plus super-Jeep tours, a large restaurant-bar, and lake-fishing opportunities.
The well-regarded restaurant has an à la carte dinner menu (mains 2700kr to 5300kr) that highlights local produce and is open to all; reservations recommended.