I read a few negative comments before departure but decided to stay in this hotel nevertheless. It's true that there is very little choice besides this, and that all hotels in Iceland are overpriced, so anyone should be prepared for this. This taken into account, the hotel does provide good service, it's clean and with an excellent view! So if you are a traveller not too spoiled by saunas/tennis courst on site etc, but look simply for a decent place just to rest, this chain hotel is a good choice.
For those who can afford driving a bit further (or closer, depenidng where you drive from), and who can spend a little extra on a significantly better accomodation in terms of its personality and character, I would strongly advice Hotel Anna close to Skogar.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC