We arrived in Borganes an hour after leaving the airport in Keflavik. After driving through the tunnel as a short cut we hit a snow/wind storm, but managed to reach Hotel Hamar at about 10pm. We were greeted by Unnur the proprietor and her assistant. They prepared us some soup and gave us a room at the very end of the corridor right next to the hot tub outside. We were the only guests in the hotel.

Unnur greeted us at breakfast and spent an hour suggesting an itinerary for the day - very personal service. She even gave us two eggs and a large sieve/wire basket to cook lunch in the hot springs about 45 minutes away.

In the evening she provided robes for us to use the hot tub under the stars, which we repeated the following night too. She also recommended a route to follow to view the Northern Lights.

Breakfast was excellent and Unnur couldn't do enough for us. We thoroughly enjoyed our stay there and would definitely recommend it.

First of all lets say the only reason you should be in Borgarnes is that you are on your way to somewhere else. That said th hotel was very clean and comfortable with the feel of an american business hotel. There is an excellent hot tub on each end of the hotel, perfect for unwinding after a day of hiking in nearby Thingvellir. There is an onsite restaurant as well as a couple of options in town. We did not eat at the hotel so i cannot comment on the quality, though it looked quite nice.

An added bonus, the views of the mountains from the back of the hotel are excellent.

We stayed twice at Hotel Hamar during our trip.
The staff is very nice and the hotel looks good with great views. Every room enjoys a little terrace which is great.
Breakfast was good (extra) and diner was ok although quite expensive.
The rooms were clean and modern (bathroom) but there is a problem in a couple of them: the cap of the bathroom sink does not stay open. We had this problem both times we stayed there, but we told the front desk and they gave us another room. However, this should be fixed since it seems to be a recurring problem. Also, the shower leaks to the rest of the bathroom from underneath the doors.
There is wi-fi in the room however it is not included in the hotel price and it is quite expensive.
There are also hot tubs outdoors which my friends told me were nice.

Borganes is not the nicest town in Iceland, but the Hamar is fortunately 5km away. Take route 1 out of town going north, and look for the red-roofed mansion on the hill, signposted for the golf club. Drive up to the red-roofed mansion, but turn right before you get there to a ghastly-looking motel. That's it. Now, despite the traditionally awful Icelandic architecture, this really isn't bad. The rooms are fine, the restaurant good (but very expensive) and the landlady a real gem - charming, funny, helpful and welcoming. Oh, and the hot tub is great!