Hotel Laugarbakki – A Hidden Gem in Miðfjörður

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We stayed at Hotel Laugarbakki in Miðfjörður and loved the bright, beautifully renovated rooms, delicious Icelandic cuisine, and house-imported wine. A true hidden gem.

Hotel Laugarbakki – A Hidden Gem in Miðfjörður

Over the years, I’ve driven through Miðfjörður countless times—ancestral territory of the legendary Grettir Ásmundarson—often passing the small village of Laugarbakki without stopping. I suspect many others have done the same. But it’s well worth taking the short detour off the main road. Nestled there is a surprisingly stylish hotel, built in the shell of an old elementary school and completely transformed.

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The renovation is impressive. The design is modern, airy, and full of light, with tasteful color choices throughout. Everything has been redone from top to bottom—the only original elements remaining are the old ceiling lights, which now look charmingly retro.

Gyða gave us a warm welcome at the reception, and Ragnar Bragi showed us around and told us a bit about the place. The former gymnasium, which no longer resembles a gym at all, now hosts conferences, meetings, and lavish events—such as the popular Christmas buffets that seat around 150 guests each night. People even travel from far away to attend; some companies with offices in both Reykjavík and Akureyri choose this spot as a convenient meeting point halfway.

The rooms are spacious—unsurprisingly, since they were once classrooms—and beautifully furnished.

Ragnar, who seems born for the role, is energetic, knowledgeable, and particularly well-versed in wine. Some of the hotel’s wines are specially imported. Ragnar even contacted the Oster family in the Mosel Valley and went there himself for two and a half months just before harvest, taking part in every step of the winemaking process. He also hosted wine tastings while there. We had a lovely Riesling from Oster called Urgestein—light, semi-dry, with delicate notes of honey and fruit. The hotel now imports its own wines, including this one.

The restaurant menu includes several nods to traditional Icelandic cuisine—such as a classic Sunday roast presented in a modern way, smoked lamb (hangikjöt), and other enjoyable local dishes.

Hotel Laugarbakki – A Hidden Gem in Miðfjörður
Hotel Laugarbakki – A Hidden Gem in Miðfjörður
Hotel Laugarbakki – A Hidden Gem in Miðfjörður

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