Last updated September 16, 2026

Aerial view of Egilsstaðir's town center, with low modern buildings, a supermarket and car parks, set against green hills and mountains

Eysteinn Guðni Guðnason / Wikimedia Commons, CC BY-SA 4.0

Iceland

Where to Stay in Egilsstaðir

Egilsstaðir is a town of around 2,630 people in East Iceland, sitting on the banks of Lagarfljót — the long lake-like stretch of the Lagará river — about 653 km (roughly 8-9 hours' drive) from Reykjavík via the Ring Road's northern route, or about 256 km (a 4-5 hour drive through the East Fjords) from Höfn. It's one of Iceland's youngest towns: the settlement grew from a single farm bought in the early 20th century by the farmer Jón Bergsson, who reportedly predicted 'Crossroads will be here' as the country's main routes converged on the site, and Egilsstaðir wasn't officially established as a town until 1947. Today it functions purely as East Iceland's service, transport, and administrative hub — the only settlement of real size in the whole region — rather than a sightseeing destination in its own right: for visitors it's best understood as the natural third overnight stop on a Ring Road itinerary, the base most travelers reach after crossing the East Fjords from Höfn and before continuing north toward Mývatn and Akureyri, with a domestic airport, supermarkets, filling stations, and the region's widest choice of restaurants. Its own appeal is understated — a wide, green river valley ringed by mountains — but two draws pull visitors just outside town: Vök Baths, a modern geothermal spa with floating infinity pools on the shore of Lake Urriðavatn about 5 km north, and Hallormsstaðaskógur, Iceland's largest forest, a short drive south along the lake and one of the country's best places to spot East Iceland's wild reindeer.

Quick facts

Best time to visit
Egilsstaðir has a subarctic climate that runs noticeably warmer and drier in summer than Iceland's coastal towns, thanks to its inland, valley setting — July highs average around 14°C, the warmest of any Icelandic town, and in July 2025 the town recorded the country's warmest month since 1933. Summer (June–August) brings the longest daylight, the mildest driving conditions through the East Fjords, and the busiest demand for the town's limited hotel rooms. Shoulder season (May, September) sees thinner crowds and usually still-workable roads; winter (October–April) brings short days, a real risk of snow and closures on the mountain roads in and out of town, and good odds for the northern lights given the area's dark skies.
Renting a car
Egilsstaðir is where a Ring Road trip pauses after the East Fjords, and the car you arrived in is what gets you to Vök Baths, Hallormsstaðaskógur, Hengifoss and Seyðisfjörður at your own pace. A domestic flight from Reykjavík is a realistic alternative if you're not driving the whole loop — you'll still want to rent a car locally once you land.

Where to stay

Best for road-trippers who just need a walkable, well-equipped base for one night between the East Fjords and North Iceland, and for anyone who wants to walk to dinner and the supermarket without moving the car again after checking in — before driving the short distance to Vök Baths the same evening or the next morning.

Egilsstaðakirkja, the town's modern white church, on a rocky, tree-covered rise above the surrounding buildings and valley

Eysteinn Guðni Guðnason / Wikimedia Commons, CC BY-SA 4.0

Egilsstaðir Town Center

Best for: Road trips, Nature lovers, First-time visitors

Our picks for Egilsstaðir

A handful of editorial calls across every neighborhood above, not just the highest star rating — see each hotel's own card further down for the full case for and against it.

💰 Best valueHérað - Berjaya Iceland HotelsEgilsstaðir Town Center📍 Best locationGistihúsið - Lake Hotel EgilsstadirEgilsstaðir Town Center

A couple of hotels in Egilsstaðir Town Center

Egilsstaðir Town Center is the top-recommended area to stay in Egilsstaðir.

Hérað - Berjaya Iceland Hotels

★★★★
  • 💰 Best value

Our take A straightforward, centrally located choice in a town with limited options — nothing flashy, but a full-service hotel right in the middle of the walkable core.

Highlights

  • The most central hotel in Egilsstaðir, a couple of minutes from the supermarket and shops
  • On-site restaurant and bar, useful in a town with few places to eat
  • Larger, modern rooms with standard amenities including air conditioning

What to know

  • Rooms are functional rather than stylish — this is a practical overnight stop, not a design hotel
  • Sits just off Route 1, so some road noise is possible in rooms facing the main road
Check availability on Booking.com

Gistihúsið - Lake Hotel Egilsstadir

★★★
  • 📍 Best location

Our take Right on Lagarfljót, with lake and mountain views from many rooms — an outlook that's genuinely rare in a town this size.

Highlights

  • Lakefront position on Lagarfljót, with mountain views from many rooms and public areas
  • On-site spa, restaurant, and bar — unusual for a hotel in a town this small
  • Built on a working farm site dating to 1903, with more character than newer builds

What to know

  • Rooms are comfortable rather than styled — the lakefront setting, not the interiors, is the draw
  • About an 8-minute walk from the supermarket and the rest of the town center
Check availability on Booking.com

Useful travel information

Iceland uses the Icelandic króna (ISK); cards are accepted almost everywhere, including small-town shops. Most visitors reach Egilsstaðir by rental car on a Ring Road itinerary, arriving via Route 1 from the East Fjords or from the north; a domestic airport on the edge of town also has Icelandair flights to/from Reykjavík (around 65 minutes, several times daily), a useful option for visitors flying in rather than driving the whole Ring Road. The town center has supermarkets (Nettó, Krónan), a swimming pool, a filling station, a bank, and a cluster of restaurants and cafés — the widest range in East Iceland. Egilsstaðir's twin town Fellabær sits just across the Lagarfljót bridge and is effectively part of the same built-up area. The region's real sights — Vök Baths, Hallormsstaðaskógur forest, Hengifoss waterfall, and the fjord town of Seyðisfjörður — all require a short drive from town.

Tips

  • Book Vök Baths ahead in peak summer — it's a genuinely popular stop for East Fjords travelers and entry slots can fill up.
  • East Iceland is the only part of the country with wild reindeer — the drive toward Hallormsstaðaskógur forest is one of the better places to spot them, especially early morning or evening, though sightings are never guaranteed.
  • Check road.is before driving the East Fjords or the mountain roads north out of Egilsstaðir outside summer — winter storms can close them with little notice.

Frequently asked questions

How far is Vök Baths from Egilsstaðir?
About 5 km north of town, roughly a 5-minute drive along the shore of Lake Urriðavatn. It's a separate stop, not something within walking distance of Egilsstaðir's town center.
How far is Seyðisfjörður from Egilsstaðir?
About 27 km (roughly a 25-30 minute drive) east over a mountain pass — a popular side trip for its blue-rainbow main street and ferry-town setting, and a common addition to an East Iceland overnight in Egilsstaðir.
How many days do I need in Egilsstaðir?
One overnight is the norm on a Ring Road itinerary. Most visitors arrive after driving the East Fjords from Höfn, spend the evening in town or at Vök Baths, and continue north the next morning toward Mývatn.
Do I need a car to visit Egilsstaðir?
For nearly everyone, yes — Egilsstaðir is a stop on a self-drive Ring Road itinerary, and a car is what gets you to Vök Baths, Hallormsstaðaskógur, and Seyðisfjörður. A rental car is also the practical way to get around even if you fly in.
Can I fly to Egilsstaðir instead of driving?
Yes — Egilsstaðir Airport has several Icelandair flights a day to and from Reykjavík, taking about 65 minutes, making it a realistic option for visitors who don't want to drive the full Ring Road but still want to see East Iceland.

Related destinations