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Where to stay in Egilsstadir: the East Iceland hub

Egilsstadir has 2,500 people, the region's only supermarket-scale services, and sits on Lagarfljot lake — Iceland's answer to Loch Ness, monster included.

Published2026-03-20

Who Egilsstadir suits

Egilsstadir suits Ring Road drivers on night four or five, travellers flying in on the domestic route from Reykjavik (45 minutes, cheaper than most people expect), and anyone who wants to base a couple of days in the East to see Seydisfjordur, Borgarfjordur Eystri (puffin colony at Hafnarholmi), Vok Baths, and Hallormsstadur — Iceland's largest forest. It has the widest restaurant range in the East and the only proper hospital between Akureyri and Selfoss.

It doesn’t suit anyone looking for scenery from their hotel window. The town is on flat farmland at the head of a lake — pleasant but not spectacular. Seydisfjordur, 27 km away over the Fjardarheidi pass, is prettier and worth a night if you can spare it.

Cost and what's walkable

Mid-range doubles run 22,000-32,000 ISK. Icelandair Hotel Herad, Hotel Valaskjalf, and Lake Hotel Egilsstadir (technically outside town on the lake) are the main options. Guesthouses in the surrounding area run 15,000-22,000.

Walkable in town: the swimming pool, Bonus and Nettobudir supermarkets, Salt Bistro and Nielsen Restaurant, and the lakeshore path along Lagarfljot. Vok Baths (a small floating geothermal pool complex) is 5 km north, and Hallormsstadur forest is 25 km south — both drive-only.

Good to know

Questions, answered

Fly to Egilsstadir or drive the Ring Road?

If you have 10+ days, drive. If you have 5 days and want to see the East, fly Reykjavik-Egilsstadir (about 45 min, around 20,000 ISK one-way) and rent a car there.

How far to Seydisfjordur, and can I do it as a day trip?

27 km over a mountain pass, about 30-40 minutes in summer. The road can close in winter for hours or days. Easy day trip in good weather.

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