Where to Stay in Hofn: Icelandic Farmstays vs. Luxury Glacier Hotels

Höfn (which translates to 'harbor') sits on a peninsula in southeast Iceland, about 450km from Reykjavík. This positioning makes it the perfect gateway to Vatnajökull National Park, the breathtaking Jökulsárlón Glacier Lagoon, and the lesser-known but equally magnificent Stokksnes peninsula with its iconic Vestrahorn mountain.

What many travelers don't realize is that 'Höfn' refers both to the main town and the broader surrounding area, which impacts your accommodation decisions significantly. Stay in central Höfn, and you'll have walking access to the town's excellent langoustine restaurants and harbor views. Opt for accommodations in the surrounding countryside (still with a Höfn address), and you'll experience rural Iceland with dark skies perfect for Northern Lights viewing in winter or midnight sun in summer.

As a border agent who's seen countless travelers' itineraries, I can tell you that many families make the mistake of treating Höfn as merely a quick overnight stop on their Ring Road journey. This area deserves at least 3-4 nights to properly explore its glaciers, black sand beaches, and hidden geothermal spots without exhausting little ones with too much driving.

Farmstays around Höfn offer what I consider the most authentic slice of Icelandic life, particularly for families. We spent three nights at a working sheep farm about 15km outside town, where Amara collected fresh eggs each morning and helped the farmer's wife feed the Icelandic horses.

These accommodations typically come in two varieties: guesthouses within the main farmhouse where you might share common spaces with the farming family, or separate self-contained cottages on farm property. We opted for the latter, staying in a charming timber cottage with our own kitchen facilities.

What makes farmstays particularly special is the connection to the land. Our host Magnús explained how the farm had been in his family for six generations, and pointed out the glacier tongue visible from our window that had receded nearly a kilometer in his lifetime—a sobering but important lesson for Amara about climate change.

The accommodations themselves tend to be simple but comfortable. Expect clean, functional rooms with traditional Icelandic decor—lots of wool textiles, wooden furnishings, and perhaps family heirlooms. Many farmstays offer home-cooked breakfast featuring farm-fresh products, which was consistently better than what we found in town.

For families, I cannot recommend a portable night light highly enough for farmstays. Summer's midnight sun means rooms often lack blackout curtains (Icelanders are used to sleeping with light!), and this adjustable brightness night light helped Amara maintain her sleep schedule despite the constant daylight.

The trade-off for authentic experience is luxury—expect limited Wi-Fi, shared bathrooms in some properties, and a definite lack of room service. But for families seeking connection with nature and Icelandic culture, these minor inconveniences fade against the memory of watching your child's face light up when bottle-feeding a lamb.

For the second half of our stay, we moved to one of the newer luxury hotels positioned specifically for glacier views. The contrast couldn't have been more striking—from our rustic farm cottage to floor-to-ceiling windows framing Vatnajökull like a living painting that changed with the light throughout the day.

These properties have emerged in recent years as Iceland has embraced higher-end tourism, offering amenities that would feel at home in any world-class destination: spa facilities with geothermal hot tubs, sophisticated restaurants showcasing New Nordic cuisine, and concierge services that can arrange glacier hikes and ice cave tours.

The architectural approach typically embraces minimalism—clean Scandinavian lines that don't compete with the dramatic landscape outside. Our room featured a muted color palette of grays, whites and subtle blues that echoed the glacier itself, with just enough luxury touches to feel special without being ostentatious.

For families, these hotels offer conveniences that can make travel smoother: reliable Wi-Fi for keeping teens happy, excellent blackout blinds for maintaining sleep schedules, and in many cases, dedicated family rooms with clever configurations for parents and children. Some even offer childcare services or kid-focused activity programs.

The downside? These experiences come with a significant premium, often 2-3 times the cost of farmstays. And while the service is excellent, you're experiencing Iceland through a more curated, less authentic lens.

One investment I highly recommend for glacier hotel stays is a quality pair of compact binoculars. From our hotel room, we spotted seals playing in the glacier lagoon and tracked the movement of birds along the glacier face—moments that became highlights of our stay and justified the splurge on the room with a view.

Whether you choose a farmstay or luxury hotel, Höfn's surrounding attractions remain the same—though your experience of them might differ significantly based on where you're staying.

From our farmstay, we embraced the slow travel philosophy. Mornings began with a leisurely breakfast before joining our host family for farm activities—collecting eggs, feeding animals, and once even helping to move sheep between pastures (an impromptu lesson in Icelandic sheep herding that had us all laughing at our amateur attempts). Afternoons were spent exploring nearby black sand beaches that we had entirely to ourselves, or hiking gentle trails suitable for Amara's 8-year-old legs.

When based at the glacier hotel, our experience became more structured. The concierge arranged a family-friendly glacier tour with crampons small enough for Amara, and a specially tailored boat tour of Jökulsárlón Glacier Lagoon where the guide focused on facts that would captivate a child's imagination. The hotel's proximity to the national park meant we could easily return for afternoon naps before heading out again for evening adventures.

Regardless of accommodation type, I recommend these family-friendly activities around Höfn:

• Visit the Þórbergssetur museum, which has interactive elements children enjoy despite the literary focus
• Take a shallow-water kayak tour of the glacier lagoon (suitable for families with children 6+)
• Explore the Viking village film set near Stokksnes
• Sample langoustine at local restaurants—even my picky eater was won over
• Hunt for puffins at Ingólfshöfði headland (seasonal, May-August)

For these outdoor adventures, I always pack our waterproof backpack. Iceland's weather is notoriously changeable, and having a completely waterproof day pack means sudden rain showers never dampen our spirits or electronics. It's been invaluable on multiple trips, especially when exploring near glaciers where weather can turn quickly.

Let's talk numbers—because Iceland is notoriously expensive, and understanding the real costs helps with planning a family trip to Höfn.

Farmstays typically range from 15,000-25,000 ISK per night (approximately $110-185 USD) for a family room or small cottage. Many include breakfast, which saves both money and the hassle of morning meal planning. Self-catering options with kitchens offer additional savings by allowing you to prepare simple dinners using groceries from the Nettó supermarket in Höfn.

Luxury glacier hotels, by contrast, start around 45,000 ISK per night (approximately $330 USD) in summer for a standard room and can exceed 70,000 ISK ($515 USD) for premium glacier-view suites. Breakfast is typically included, but dinner at hotel restaurants averages 5,000-8,000 ISK ($37-60 USD) per person—a significant additional expense for families.

My approach to balancing budget and experience is to mix accommodation types. Begin with the luxury stay while you're still excited and energized by Iceland's novelty, then transition to the more authentic but basic farmstay once you've adjusted to the country's rhythms. This strategy front-loads the splurge while ensuring your lasting memories are of authentic connections.

For booking farmstays, I've found that many of the best options aren't on major booking platforms. The website Icelandic Farm Holidays (www.farmholidays.is) lists vetted properties, or contact the Höfn tourist information office for recommendations of farms that particularly welcome children.

Luxury properties are best booked 6-8 months in advance for summer visits, particularly if you want specific room types. Watch for shoulder season specials in late May or early September when you can sometimes find 20-30% discounts while still enjoying long daylight hours.

For either accommodation type, I recommend packing a sleep mask for summer visits. Even with blackout curtains in luxury hotels, Iceland's midnight sun can disrupt sleep patterns. These silk masks are comfortable enough that even my daughter wears hers without complaint, helping us all maintain our energy for daytime adventures.