We recommend this unusual hotel. 20 years ago it was a small farmhouse on the edge of a lake surrounded by countryside. It's now in a suburb -- but still on the expansive lakeside with enough land surrounding it to make it seem as though you're still in the country. In the last 20 years the family has added fourteen large bedrooms with excellent heating, and beds designed for tall Nordics. The en-suite bathrooms we encountered were way above the standard size for Iceland. Coffee and tea are permanently available outside a comfortable farmhouse lounge overlooking the lake. The family will give you a lift into and out of Reykjavik for a small charge (I reckon it was a quarter of a commercial taxi price). We didn't take dinner there, so I can't speak for the cuisine: but breakfast was copious in its typically Icelandic way.
It's the perfect place to stay if you want to experience rural Iceland within a short drive from Reykjavik.
I have only one criticism -- it's difficult to find (for a small city, Reykjavik and its suburbs are laced with unbelievable dual carriageways with sliproads, and if you take a wrong turning it's difficult to rectify the error). The solution? A much more detailed online map than is currently provided.
But set that aside -- once you've arrived you're delighted with what you find.