This hotel was, by a good margin, the most expensive hotel we stayed at in Iceland (about $150 USD)… and it really wasn’t any nicer than any other place we stayed to be perfectly honest. We ended up staying here because in late October, the only other place that was still open in town was the Guest House (don’t recall the exact name), and it was a bit of a dump.
That said, the hotel was nice and clean and the management was extremely friendly and spoke good English. Upon check-in, they gave us the option to stay in the building across the street at no extra charge, because there is a bar upstairs in the main building with live music and dancing which can get quite noisey. The rooms, they told us, were newer and it would be quieter there. I thought that was very nice of them to let us know this and where we were turned out to be very quiet and peaceful (I think we were one of only two guests staying in the whole building that night… no joke). The bar upstairs in the main building is apparently a local hangout on the weekends and was a lot of fun to "people watch" from the restaurant as everyone was coming in all dressed up in their suits and nice dresses.
Speaking of the restaurant, it serves pizza which is worth trying. We were several days in to our Iceland trip when we got here and it was nice to get some food that tasted like home. The wait staff there was very friendly… the service was a little slow; but we didn’t mind because there really isn’t much else to do in town once the sun goes down. LOL
–Dan Thompson