Adventures in elf-country
The Sel Hotel Myvatn is at the south end of Lake Mývatn and would be my pick to stay in the area. Great location, comfortable rooms, good restaurant and excellent service all come together to make any visit here a worthwhile experience. The Skútustaðir pseudo-craters are just across the street and the rest of the magnificent adventure of Mývatn is right next door.
Mývatn is a great shinging jewel in the crown that is Iceland. Sporting Dimmuborgir, the most spectacular of all lava fields where it feels like you are in the middle of the results of a prehistoric pandemonium turned playground of the elves. The rugged lava drifts into the beautiful lake creating a kind of otherworldliness to the area which is also a sanctuary for numerous bird species as well as being the home of a small farming community. The local geothermal baths are absuletely wonderful with a breathtaking view and less than mile from the Námaskað hot spring site, plus being relatively close to the truly majestic Dettifoss waterfall and the enchanting and mysterious Ásbyrgi.
It´s easy to spend 2-3 days exploring the Mývatn area and Hotel Sel is a good place for your base of operations, but if you´re just passing through I would also recommend the lunch buffet and the hotel is right on the Ring Road so it´s not hard to find. There are of course other places in the area but this one is my pick for the combination of factors stated above; location, quality, service and food. Whether you are planning to loose yourself in elf country bathed in the midnigt sun or see the aurora flickering above the snow clad volcanic craters and frozen lake, summer or winter.. check it out!