Hotel Budir (www.budir.is) is one of the top five "modern seaside hotels" in the world, according to an article published in the U.K.’s Independent. Located on the Snaefellsnes Peninsula, the hotel has a view of not only the ocean, but of lava fields and the Snaefellsnes glacier. Snaefellsness is the area of Iceland written about by Jules Verne in his novel "Journey to the Centre of the Earth." Also in the top five were Hotel J Sweden, The Caves Jamaica, Portixol Mallorca, and Deseo Mexico.

What’s to do at Budir? Plenty. There are a variety of daytrips by sea from Arnarstapi, Olafsvik and Stykkisholmur. You can go sightseeing around the isles of Breidafjordur or shellfishing from Stykkisholmur, or you can try your hand at deep-sea fishing. Lately whale-watching has become extremely popular in the surrounding waters – the sea is teeming with pods of whales.