Álfheimar Hotel is located on a farm in the fishing village of Borgarfjördur Eystri, 44 mi from Egilsstadir. It offers free Wi-Fi and rooms in 3 different buildings with large beds and private bathrooms. Some have sea views. Álfheimar’s restaurant uses ingredients supplied by local fishermen and farmers. There is also a children’s playground. Fishing, hiking and birdwatching are popular activities among guests. The area around the hotel is well-known for its puffin colony.