Milk Factory Hotel Guesthouse Review Hofn, Iceland
Located in Southeast Iceland, just outside the small coastal town of Hofn, the Milk Factory hotel offers travelers clean and basic accommodations at a reasonable (for Iceland!) rate. I stayed at the Milk Factory hotel in Hofn as part of my two-week Iceland ring road trip. Here is my review of the Milk Factory Guesthouse and Hotel, in case you’re wondering if you should stay here. Let’s go!

While officially, this place is called a ‘guesthouse’, its essentially a small family-owned hotel. There are 17 rooms available and every room has a private bathroom. The hotel offers larger family rooms that can sleep 4 people – a rare thing in Europe! The family rooms have two stories.
You might be wondering about the name – Milk Factory – what’s up with that? This building actually was a milk factory back in the day, but with the remodeling job, it was hard to picture this as an industrial factory!
Hot tip! If you need to do laundry, there is a laundry service in the town of Hofn – Efnalaug Dóru. We used them while here and they did a fantastic job at a fairly reasonable price for an entire bag of laundry. It was done within about an hour and a half! Just be mindful of their business hours.
Rooms at the Milk Factory Hotel – Hofn
We were assigned a classic room. Classic rooms have one double bed (it’s more like a US Queen bed). Everything about the room was great – it was immaculately clean, modern, and is everything I grew to expect in an Icelandic hotel, with minimal decor and sleek furnishings – perfect for one night. Rooms have very large windows with blackout curtains and have a mini fridge. Free parking and free wifi is available.




Location – Milk Factory Hotel
The Milk Factory hotel is located on the outskirts of Hofn, Iceland – in fact, the sign for this place is so big, you literally can’t miss it as you’re driving into Hofn. Hofn is a small coastal community, and there really isn’t much in the town at all, so don’t worry about staying here and not being right near the city center – you’re not missing anything! Most guests, including us, stay here for one night, maybe two, while on their Ring Road trip journey. It’s a good location to see the following sites:
Vestrahorn: 20 minutes
Viking Village: 20 minutes
Glacier Lagoon: 1 hour
Diamond Beach: 1 hour

For us, we visited Vestrahorn and the Viking Village before we arrived at the Milk Factory for the night. Our previous night was spent in Seydisfjordur, along the Eastern Fjords of Iceland. Hofn was our stopping point for the day.
As for our route: The previous night, we spent at Vid Lonid Guesthouse in Seydisfjordur. After we left Hofn, we stayed at the Hunkkubakkar Guesthouse.
One interesting thing about staying at the Milk Factory Guesthouse is that there is a farm with Icelandic horses next door. You can walk outside on the property of the guesthouse and view the Icelandic horses from behind the fence. This was a great spot to photograph the horses! Always remember — owners of Icelandic horses don’t want people feeding or petting their horses without permission. Just view them from behind a fence!


Breakfast at the Milk Factory Guesthouse
Breakfast is included during your stay and is served from 7:00am – 10am every day. This is your standard European style breakfast featuring cold cuts, cereals, cheese, fresh breads, and carrot cake (for some reason!). Coffee and tea are available in the breakfast area all day. It wasn’t the best breakfast we had on our Iceland ring road trip, but it was decent enough.




Final Thoughts – Milk Factory Hotel Hofn Iceland
This was a great place to stay for one night on our Ring Road trip. Rooms were spacious and clean, and the guesthouse has an easy-to-find location. The beautiful horses were a bonus! I would definitely stay here again, if I return to Iceland. If you’re interested in staying at the Milk Factory Hotel, you can check availability here.
Want more Iceland Hotel Reviews?
Here are all of the links to the reviews on this site about the Iceland hotels we stayed at during our Ring Road trip through Iceland:
Milk Factory Guesthouse – Hofn, Iceland
FossHotel, Patreksfjordur Westfjords
FossHotel Stykkisholmur – Iceland Hotel Review
Hotel Vellir – Hafnarfjordur Iceland
Sel Hotel – Myvatn, Iceland
Hunkubakkar Guesthouse – Kirkjubæjarklaustur, Iceland
K16 Apartments – Akureyri Iceland
Courtyard Marriott – Keflavik Iceland
Vid Lonid Guesthouse – Seydisfjordur, Iceland
Stay Inn Gardur Iceland – at the Secret Lagoon
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Guide to visiting Seljalandsfoss Waterfall in Iceland
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How to see Puffins in Iceland:
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Complete Guide to the Secret Lagoon in Iceland
Honest Review: Sky Lagoon (with Sky Pass) in Iceland
Iceland’s Blue Lagoon – Is it worth it? An honest Review
Iceland Itineraries
Two Weeks in Iceland – Ring Road – 14 Day Itinerary
Snaefellsnes Peninsula – Iceland: Best One Day Itinerary
Iceland’s Golden Circle – Is it Worth It? Itinerary and Guide
Best Spots to See on the Reykjanes Peninsula – Iceland
15 Random Iceland Travel Tips for your Ring Road Trip
Other Iceland information and things to see:
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How to find the Yoda Cave in Iceland
Tips for Visiting Iceland on a Budget
Diamond Beach in Iceland: ice Beach Everything You Need to know