Excellent service and clean room with en suite shower and toilet on a budget in a beautiful little town - we arrived early in the check-in time range to find that our room needed something-what we weren't sure since the young woman who checked us in whisked us back to reception while it was fixed. Ten minutes later, we were in a warm double room with more space than expected, and a much appreciated en suite shower, sink, and toilet. All was spotlessly clean. The young woman who checked us in provided a wealth of information about the town, the harbor with nesting puffins, and local hikes and things to see - she even told us what time to watch out for the peak across the fjord to turn pink from the setting sun. She was also able to help us with some laundry - the hotel did a load for us at a charge of ISK1500 - very reasonable, we thought. The hotel is right on the water (see photo with yellow flowers taken from parking lot). Included breakfast was among the best we've had in Iceland - good selection on the buffet and fresh strong coffee. They even had a bottle of cod liver oil and shot glasses out (we were too gutless to try it but it was definitely memorable). The puffins were AMAZING and we plan to come back to the town and to Álfheimar!