We stayed here in early October. Due to the weather we had to stay an extra night and the hotel staff were very helpful in helping arrange this with minimal notice. As with most places in Iceland, English was spoken to a high standard. The hotel is located right in the town, a few minutes from the beach. The rooms are not huge or fancy but are very comfortable and clean. A program of refurbishment is clearly underway and they seem to be doing a good job (note this did not disrupt our stay at all). I would recommend eating in the restaurant, the food was delicious! Breakfast was also very good. Vik itself is a nice small town, very strategically located along the southern coast. It would have been nice to stay there longer!
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