Hótel Norðurljós (Hotel Northern Lights) is a family runned hotel and has been a part of the history of Raufarhöfn for the last 40 years.  It was originally built as accommodation for workers employed in the fish processing industry and at times was the home for up to 200 "herring-girls" who came in the summer months to salt herring at the "Odin's Station".  Towards the end of the "herring adventure" at the end of the 1960's this place was converted into a hotel.  To begin with the hotel was run as a summer hotel but during the last five years it has stayed open throughout the year.  The bulding has been extensively renovated. There is a lounge in the hotel for the use of guests as well as a study with books in English, dealing with all aspects of Icelandic nature.  The restaurant serves a variety of local and international dishes. The bar provides excellent views across the harbour.
 
The hotel is located near the centre of the quayside with a view across the harbour where it is possible to observe the fishermen in the afternoon when they land their catch from their small fishing boats.  Bigger fishing boats may also be seen coming and going.  To the west of the hotel is an open space where the arctic tern nests as well as the golden plover and several other species of birds.  A lot of birds can also be observed in the harbour area and further away is the Höfðinn, a nesting place for many species.  20 species of birds have been spotted from the windows of the hotel.