Álfheimar Country Hotel

Álfheimar Country Hotel

The Álfheimar country hotel is close to the village Bakkagerði in the eastern Borgarfjörður fjord, widely renowned for unique nature, grassy valleys and majestic mountains. Hikers can expect to find many tempting routes here that wind over mountain tops and moors and over to abandoned farms and villages in the region. This is the home of the puffin, the elves, and those who want to enjoy a respite in beautiful and calm surroundings on a bright summer’s day. Open from 1 April to 1 November. 

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  • Private bathroom
  • Family rooms 3+
  • Working farm
  • Wi-Fi
  • Restaurant
  • Bar
  • Meals on request
  • Facilities for disabled
  • Meeting / Conference room

In the area

  • Fairytail-land room, restaurant/café, sauna, hot tubs and a grocery store in Bakkagerði (0 km)
  • Hiking and bird watching
  • Puffin platform in Hafnarhólmi (15.04-10.08)
  • Stórurð and Dyrfjöll beautiful hiking area
  • Egilsstaðir 70 km
  • Seyðisfjörður village (ferry Norræna) 100 km


17 double/twin rooms with en-suite bathrooms, located in two bungalows. Cots available upon request. Easy access for disabled people. Free Wi-Fi in all rooms.


There is a restaurant and bar in the guesthouse that serves meals and light refreshments. Breakfast is included. Locally sourced ingredients are emphasised, as well as fresh fish and seafood. Ask hosts for pre-packed lunches before longer hikes.

Service and recreation

Guests have access to a laundry room. Fishing permits and bike rental. Playground. There is a supermarket in the village, as well as restaurants. At Kjarvalsstofa there is a museum dedicated to one of Iceland’s most beloved artists, Jóhannes Kjarval (1885-1972), who grew up there from the age of four. The old post office holds an enchanted world, and children can enjoy local stories about elves. Birdwatching is possible from Hafnarhóll, where puffins and other species greet enthusiastic visitors. There are many hikes to explore, both along the coast and up in the mountains. Hosts at the guesthouse can provide information about hiking routes and supply maps. The nearest town is Egilsstaðir (70 km / 43.5 mi). The town Seyðisfjörður, where ferry Norræna docks, is 100 km (62 mi) away.

A paradise for hikers and outdoor enthusiasts

The eastern Borgarfjörður is the northern-most fjord of the East Fjords. A 10-km-long green and wide valley (6.2 mi) extends from the head of the fjord, and magnificent mountains guard the valley on both sides, the most prominent of which are the Dyrfjöll mountains that enchant hikers and nature lovers alike. Álfheimar is an optimal accommodation option for those who enjoy hiking, either by sea, through a quiet valley, or up in the mountains.

Abandoned farms at the edge of the world

There are many charming hikes that go over moors and through mountain passes south of the eastern Borgarjörður, that then continue on to abandoned farms such as at Víkur and Loðmundarfjörður fjord. A small path, suitable for 4x4 vehicles, goes on to town Húsavík and Loðmundarfjörður fjord and it is passable between July and September. The entire region is the hiker’s dreamland, whether you are seeking shorter day-tours or longer excursions with a backpack and a tent for company. Organized guided hiking tours that last for up to 6 days are offered a few times over the summer.


Stórurð – a unique natural phenomenon

West of the Dyrfjöll mountains visitors will find Stórurð, a unique and spectacular natural formation, where boulders, green ponds and grassy hollows are grouped together. There, onlookers can still see the evidence of a former glacier tongue that covered the landscape during the last ice age. It is possible to hike to Stórurð along a few marked routes, including from Bakkagerði and Vatnsskarð (where the road goes on to the eastern Borgarfjörður). Assume that a hike to Stórurð will take the better part of your day. You will cherish the experience for a lifetime.

Hosts:  Ásgeir, Arngrímur Viðar and Þórey


In the area

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