This former manor is situated at the foot of Mt Reykjafell, just east of River Varma on the outskirts of the horticultural town Hveragerdi.  It is a part of one of the largest geothermal areas of the country, the so-called Hengill Area.  The name of the town is derived from the natural hot spring area still active in its centre, but much changed because of earthquakes and exploitation.

In earlier times, the Reykir estate was the seat of wealthy an powerful men, such as Gissur the Earl in the 13^th century and Oddur the Vice Governor in the 16^th century.  Shortly before 1930 the government bought the estate and the town started developing.  For a short period of time a rehabilitation centre for TB patients was operated there and in 1939 the Horticultural College was founded.