Hotel Capitano is a small and friendly hotel in a renovated 100 year old corrugated iron clad house, located right on the ocean front in Neskaupstaður. The hotel is run by a former captain on a fishing ship while it's worth noting that Neskaupstaður is one of Iceland’s greatest fishing villages. Now and again the captain takes guests shore angling on the pier.

Paintings by Tryggvi Ólafsson, one of Iceland’s best known contemporary artists, adorn the hotel walls. Ólafsson grew up in Neskaupstaður but lived and worked for decades in Copenhagen. At the edge of town, near the lighthouse, is Iceland’s first official Public Recreation Area. It fosters diverse bird life and occasionally puffins are spotted there.

The area offers hiking trails, an historical cave, ski area with three lifts, a golf course and an outdoor swimming pool with hot tubs, sauna and gym. The hotel has 9 rooms and is open all year round.