Best Hotels & Accommodation in Budardalur — Biggest Selection & Lowest Prices Guaranteed

Staying in Budardalur when choosing accommodation in West Iceland puts you in the middle of the Dalir Valleys, the setting of Laxdaela Saga and the birthplace of Leif Eriksson. 

The Eiriksstadir Viking Longhouse stands beside the original walls of Erik the Red's farm, the hamlet of Laugar in Saelingsdalur Valley was home to Guðrún Ósvífursdóttir, and the dairy farm at Erpsstadir still churns its own ice cream and skyr.

The village is the only settlement in the Dalabyggd municipality and its service center, set at the head of Hvammsfjordur Fjord where it meets Breidafjordur Bay. It lies 95 miles (153 kilometers) from Reykjavik, about two hours on paved Route 1 and Route 60, which makes it a natural overnight on self-drive tours heading north.

The town of Borgarnes is 50 miles (80 kilometers) south, and the harbor town of Stykkisholmur lies 53 miles (86 kilometers) west.

Which property you pick matters more here than the price, because the village has a single grocery store and most stays sit 3 to 19 miles (5 to 30 kilometers) out along the valleys. Below, the stays are grouped by the amenity travelers ask about most.

Best Accommodation With a Restaurant Near Budardalur

Accommodation with a restaurant is worth checking first around Budardalur, since the village shop closes at 8:00 PM and few kitchens stay open late in winter. Like the rest of the hotels with restaurants in Iceland, each of these saves you an evening drive in the dark.

• Gastehaus Dalakot: Sits on Dalbraut in the middle of the village, within walking distance of the shop, the sports center, and the Leifsbud Exhibition. The bar downstairs stays open year-round.

• Dalahyttur Lodges: Cabins for two at Hlid on Road 581, each with a kitchenette, a private bathroom, and a veranda facing the river and the mountains. The site sleeps 37 in total, so several cabins can be taken together.

• Dala Hotel: The area's only hotel, 12 miles (20 kilometers) northeast at Laugar in Saelingsdalur, with a swimming pool, sauna, hot tubs, and a games room. The rebuilt Gudrunarlaug Pool is a short walk from reception.

Best Self-Catering Accommodation Near Budardalur

Self-catering is the cheapest way to sleep in the Dalir Valleys, especially for longer stays or groups. These stays sit among the wider run of cottages and guesthouses in Iceland, and the Krambudin Store on Vesturbraut covers the basics.

• Gil guesthouse: A countryside property at Skriduland with a shared lounge, free parking, and Wi-Fi. Check-in starts at 4:00 PM, which suits a late arrival.

• Ravencliff Lodge: Stands at Fremri-Hrafnabjorg in the Hordudalur Valley, 9 miles (14.7 kilometers) out, with a garden to sit out in and a Tesla charging station on site. The living area is roomier than most cabins nearby.

• Mystic Light Lodge: A one-bedroom cabin at Ljarskogastrond, 4 miles (6.7 kilometers) from the village, with floor-to-ceiling windows and a skylight set directly above the bed. A quiet beach runs along the shore below it.

Best Accommodation for Families and Groups Near Budardalur

Alongside other family hotels in Iceland, these three keep everyone under one roof.

• Seljaland Ferdathjonusta: Offers rooms, bungalows, and a three-bedroom house at Seljaland in Hordudalur, 10 miles (15.8 kilometers) away. A garden, terrace, and picnic area give everyone somewhere to spread out.

• Kornmuli: Gives every bedroom its own bathroom and adds a washing machine, which counts on a longer trip. An outdoor hot tub opens off the inner courtyard.

• Thurranes Cottage 3 With an Outdoor Hot Tub: Adds a sleeping loft above the living room and a children's playground on the grounds. Eiriksstadir is 11 miles (17 kilometers) by road.

Best Accommodation With Hot Tubs Near Budardalur

Several stays around Budardalur have outdoor hot tubs, giving you the option to soak privately after a day on the road. These three, like the wider list of hotels with hot tubs in Iceland, keep theirs outdoors with an open view.

• The Castle: This beachfront lodging stands on Brekkuhvammur in the village, close enough to walk everywhere, with laundry service and a garden laid out for eating outside.

• Vogur Country Lodge: A three-star lodge on the Fellsstrond Coast, 18 miles (29 kilometers) out, where the sauna, barbecue hut, playground, and library are free to guests. Dogs are welcome.

• Thurranes Cottage 2 With Hot Tub: A two-bedroom cabin at Thurranes with a charcoal grill and a sleeping loft above the living room. Drangsnes on the Strandir Coast is roughly 30 minutes north.

Where To Stay for the Saga Sites and the Westfjords Route

Two things bring travelers to this valley, and the right base differs for each.

• Nearest the longhouse: Kornmuli is 10 miles (16 kilometers) from Eiriksstadir and Thurranes Cottage 3 is 11 miles (17 kilometers), both inside a 20-minute drive.

• In the saga valley itself: Dala Hotel sits at Laugar in Saelingsdalur, where Gudrun Osvifursdottir lived, a short walk from Gudrunarlaug Pool.

• On the southern approach: Saudafell Guesthouse is a working sheep farm south of the village, where a shared lounge and kitchen make it easy to settle in for more than one night.

• Last stop before the Westfjords: For travelers heading north toward the Westfjords, staying in Budardalur keeps you close to Route 60, the main route toward Holmavik.

What To Know Before Booking a Stay in Budardalur

Six practical points separate a good night here from an awkward one.

• Village or valley: only two properties stand on the village streets. The rest are 3 to 19 miles (5 to 30 kilometers) out, so book in the village if you want to reach the shop or the pool on foot.

• Soaking: the sports center opened in February 2026 with a 25-meter outdoor pool, hot tubs, a sauna, and a cold plunge. Saelingsdalslaug Pool at Laugar is a second option 12 miles (20 kilometers) away. Pay for a private tub only if you want the water to yourself.

• Season: the Eiriksstadir Longhouse and the Leifsbud Exhibition close outside summer. The pool, shop, fuel station, and Dalakot are what remain open from November to March.

• Road surface: Route 60 in and out is paved, but Route 54 west and Route 590 along the coast are gravel with single-lane bridges and blind crests. Check umferdin.is or call 1777 before setting off.

• Supplies: the Krambudin Store on Vesturbraut Street is the only grocery store, open 8:00 AM to 8:00 PM on weekdays and 10:00 AM to 7:00 PM on weekends. Stock up before driving out to a cabin.

• Dark skies: Dalabyggd is a large rural municipality with very little light spill, so a clear night in the darker months is worth staying awake for.

Book Your Stay in Budardalur

Budardalur is a working village rather than a resort town, and that is exactly the appeal. You get a swimming pool, a shop, a fuel station, saga country a few minutes away, and rates well under what the same standard costs along the South Coast.

Pick a base from the four groups above, then build the days around it. West Iceland tours reach the lava caves, glacier tunnels, and Breidafjordur whale watching within range of the valleys, and a bed here keeps you closer to all of it than one in the capital.