The best area to stay in Hallormsstadur is near Lake Lagarfljót, as this is where you'll find the main cluster of accommodation and activities.This area is characterised by its direct access to the lake and the surrounding Hallormsstadur National Forest, which is Iceland's largest forest. You'll find a few guesthouses and hotels dotted along the lake's banks, offering views of the water and the wooded hills. The region is known for its walking trails, including marked paths through the forest suitable for various fitness levels, and it's also where you can find the Hallormsstaður Arboretum.Couples looking for a peaceful retreat will appreciate this area. The hotels often provide a tranquil setting with opportunities for lakeside strolls, birdwatching, and enjoying the natural scenery. Many accommodations offer dining options on-site, superb for a relaxed evening after exploring.For those interested in outdoor pursuits, staying near the lake gives you easy access to activities like fishing, kayaking, and exploring the forest trails. You can also visit the Lagarfljót river, which is known for its mythical creature, the Lagarfljót Worm.