Originally, Valaskjálf was built by the local government in 1966 as a community center. A few years later, the actual Hotel Valaskjálf was built due to the large increase in tourists to the region. The unique beauty of nature with Hengifoss as the main attraction was the main reason for this increase.
The town of Egilsstaðir was founded by the Icelandic Parliament in 1947. Egilsstaðir takes its name from the farm of the same name that previously owned the land on which the town stands. Originally, the town had only 110 residents.
In the beginning, the town's main industry was providing services to the region's agriculture. Shortly after the County Chamber of Commerce was founded, the population increased significantly and a variety of industries began to flourish. By around 1980, the population had increased tenfold, and today more than 2,000 people live in Egilsstaðir.
The natural beauty of the Fljótsdalshérað has attracted many visitors, both foreign and domestic. Icelanders have long flocked to the forested Fljótsdalen valley, which is home to one of the largest forests in the country, Hallormsstaðarskóg (where Hotel Hallormsstaður is one of the hotels in the 701 Hotel chain), the Lagarfljót river, which contains the Lagarfljótsorminn (Snake of the Lagarfljót River), and the beautiful Hengifoss waterfall.
Not to be forgotten is the thriving cultural life that thrives in Egilsstaðir with musical events, hagðringamót and more.

Egilsstaðir is the capital of East Iceland and is located in the popular Fljótsdalshérað district, which contains many of the country's most beautiful natural gems. The district has a rich cultural and artistic life that has been shaped by the beauty of the environment.

Whether you visit Fljótsdalshérað for the nature, the culture, or if you simply want to enjoy a quiet stay in beautiful surroundings, Hotel Valskjálf is your home away from home.