Hofdi House was erected in the late 19th Century, after the posting of a French consulate in Iceland. It was one of the many wooden catalog houses built in Iceland in the early 20th century, but probably one of the most beautiful ones. It still bears many signs of its original purpose, such as the letters RF, the abbreviation of the French Republic the name of the consul and the year of its construction above an inside door.

According to the Nordic Adventure Travel site: "The most famous visitor of the Hofdi house is probably Sir Winston Churchill. He visited Iceland in 1941. Marlene Dietriech also visited the house during the second world war. The last British Ambassador to occupy the house was a bachelor and rather peculiar in his habits. Every day he saw a being of another world roaming about the house. He called it "the White Lady". She tried his nerves so much, that he persuaded the British foreign office to sell the house. Eventually the house became the property of the municipality and was destined for demolition as it had fallen into disrepair.

"The municipal architect, however, had it restored secretly and then showed it to the mayor, who was quite satisfied with the results. From then on the house has been used for official receptions and meetings of the municipality. Thousands of renowned guests have honoured the capital with there presence, among them heads of states, the king of Norway, presidents of France, the queens of England and Denmark, the presidents of Italy, chancellor Willy Brandt of Germany and many others. The most renowned guests of the Hofdi house are without a doubt the presidents Ronald Reagan and Mikhail Gorbatsjov, who attended a summit meeting there in October 1986."

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