We stayed at Guesthouse Hvammur at Hofn harbour for two nights as part of our honeymoon. When we booked it we found it advertised as guesthouse, but in fact it wasn't much more than a cheap hostel. Shared shower and only one toilet for up to 5 rooms (=10 people) which is not very useful. The TV didn't work and the owner was not very friendly. We had to pay extra to get some internet and even tho we booked a double room it was a twin room so we had to re-arranged the beds. I wouldn't recommend it.
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