Stay at Hótel Djúpavík, in the Strandir region, the east side of the Westfjords. Surrounded by steep cliffs and a tall waterfall, Djúpavík was once a busy place with a big herring factory and nearly 300 workers. Now it’s a home for one family, the same family that runs the hotel. It’s in a charming original building with amazing fjord views. Next door there is the old factory that hosts a photography exhibition every summer, and a couple of massive oil tanks you can climb into. The acoustics inside these tanks have attracted many musicians, the most famous of them probably Icelandic band Sigur Rós who did a scene there for their movie Heima.