This appeared to be the worst stay for us on our trip around Iceland. We spent there 2 nights July 30 and 31.
Our room was supposed to be for 2 people. Apart from having 2 tight beds and 2 sets of towels in tiny bathroom nothing hinted much that room wass designated for 2 people. In fact it was too tight for even 1 person. Thank God we had a car so we could take what we needed from our bags and keep the bags in the car, because the room didn't have space for even 1 standard suitcase.
The other problem was the dirt. It's worth mentioning that the whole hotel smells by sulfur, just like the hot water in all over Iceland, expect as soon as you tighten the tab in other places the smell disappears, while here it stays in room all day/night long. If to add that the room floor has the wall-to-wall carpet such filthy and stinky that it absorbs and distributes all the smell at all time... you get the picture.
The staff is average. Not too friendly, not too caring, they just do the job.
The breakfast was the only plus. It had all one would need to start the morning well.
Overall, try to look for another place to stay in that area if you can afford it. There is one of the most picturesque parts of Iceland, so it's worth not to spoil the experience by this rat hole Gigur.