Blue Hotel Fagrilundur, is a family-run hotel located in the center of Iceland’s famous Golden Circle, in the village of Reykholt. From here, guests are perfectly located to explore some of the country’s most treasured landmarks, including Geysir, Gullfoss, Þingvellir National Park, and the historic site of Skálholt.

The hotel itself is a charming log-house-style building with around 40 rooms, tucked among trees and greenery. Many guests appreciate the cozy, peaceful atmosphere and the feeling that the place has a warm and welcoming spirit — a comfortable home base after days spent exploring Iceland’s natural wonders.

Just next door, guests will find excellent local amenities, including the popular restaurant Mika, known for its pizza, lobster salad, and handmade chocolates. A small local shop, Bjarnabúð, a self-service gas station, and a public swimming pool with hot tubs are all within easy walking distance. The well-known Friðheimar greenhouse restaurant is also nearby, offering a unique dining experience inside a working tomato greenhouse.

Blue Hotel Fagrilundur is ideal for travelers who want to stay in a central yet relaxed location, with easy access to both South and West Iceland. Whether you’re stopping for a short visit or using Reykholt as a base for exploring the Golden Circle, the hotel offers a cozy, comfortable stay with genuine Icelandic hospitality.