Miserable. We stayed at the Vatnsholt Inn for a few days. We paid about 110 euros/night. We chose it based on online reviews. Major disappointment! The online photos, descriptions, and reviews were very misleading, in our opinion. The "hotel" is a long prefab shed outbuilding on the "farm," cheaply walled off into a row of mean rooms. The rooms are wretched, tiny, shabby construction, bad linoleum floors, unusable bathroom. Rooms smelled of bad plumbing and were noisy -- each time someone entered the room shed, it was loud and shook the entire building. No phones or wireless access. Bedding was low-quality but newish synthetic comforter and pillow. Room was somewhat clean -- there was mildew and some filth in the bathroom, a few human hairs on the sheets/pillows, etc. For showers, we ended up driving to a different town and used their (very nice) public showers/bathhouse.

The location isn't good either -- deep in the boggy and depressing area below Rte 1. The nearest town Selfoss is down-and-out. The farm was not maintained well, in my opinion. Livestock droppings around the hotel buildings weren't shoveled up during our stay. Dung flies got into our room, and attacked our face and eyes at night.

The common/eating/restaurant area is a huge cold room in a prefab outbuilding, half of which is a walled-off dark are where the livestock live. Internet access often didn't work. Breakfast was a lower quality but complete Scandinavian buffet. Nothing was "homemade" -- coffee and "juice" came from a vending machine, everything else was gas-station quality storebought. The same food came out every day until it was used up.

The other guests seemed miserable, and no one socialized with each other. The people working there were friendly enough, but didn't help much with advice about the area. The farm animals were friendly, some sadly flea-ridden dogs, and a surprising menagerie of expensive "status" pets (English Bulldog, Chinese Cresteds).

All in all, Vatnsholt felt like a tourist trap. The reality was a shock, compared to online reviews and touts. We won't stay here again -- when we return to Iceland, we'll stay at an Edda (school dorms converted to hotels for summer) which at least are built for human habitation. I'm sorry to say this but my advice is, stay somewhere else.

Disastrous stay.Selfoss is a very missable place.We only came to use this place as a base fro a couple of days.Despite contacting them several times that we wanted to eat when we arrived there was no food -a party was on. They eventually and grudgingly turned up with a very cold soggy hamburger! In our opinion this was grossly dishonest of the place.We ended up in what was the smallest room I have ever seen in over 40 countries.Very dull location - breakfast looked very tatty and stale.We gave it a miss. Never so delighted to leave a place.Probably suits people just doing short trips out of Reykavik.If you go much further you will realise how bad this place is compared to practically anywhere else in Iceland.

My husband and I traveled to Iceland for our honeymoon in early Oct. 2011. We weren't originally going to stay over night in Selfoss but once I read reviews for this place I decided to change our itinerary and I'm so happy I did!! We actually ended up staying 2 nights here in the deluxe double room. Everything about this guesthouse/farm is wonderful. We were so impressed with the house, our room(very comfortable bed), the breakfast and dinner and the owners are wonderful people. They are so nice and fun and gave us a more scenic route to a few nearby attractions. They recommended places to go in Reykjavic to as we were travelling there next. This place was our best accomodation in Iceland out of 5 places we stayed across the southern coast. We couldn't recommend this place more!! I wish we could have stayed here our whole trip. Thank you Vatnsholt!!

This was our first trip to Iceland and after long delayed flight we were all in need of a rest. We arrived slightly early but were warmly welcomed.
The kids settled in well with the playground and the totally loveable Labrador Tinnie with his ball or lump of wood.
Dinner as mentioned previously was a fixed price but what a dinner!! I had the best lamb that i had tasted and my wife had the fresh trout. The children were happy with the chicken which we had the following night.
The playground was ideal and the rooms spotlessly clean. The staff, owners and all the animals were very friendly and all of us would not hesitate to return.
Location wise the hotel is an ideal base for Geysir, Gullfoss and the national park.