This place looks like nothing from the road. Probably an farmhouse at one point. They had some nice Christmas lights on the building to cheer it up. They are maybe 5 miles (8 km) west of Vik. The road to town goes up and over, with some switchbacks, so it could be dicey for tourists in the winter if the weather is bad.
I was traveling with my daughter, so the room with two beds (room #2) worked out well. I really liked this place. The young man who checked us in was friendly and effective. The room was nice and clean and quiet. We had flown in from the USA, arrived at Reykjavik at 7 am local time and spent the next 12 hours sightseeing and driving, so when we got to Volcano Hotel, we were tired. Ran into town for dinner. They leave the front door of the hotel unlocked and go home for the night, so that tells you how safe things are. There are not many other businesses or people around. The hotel has a southern view and you can see the ocean not too far way.
The shower was a bit odd for an American, but I have no complaints. The water was hot and the water pressure was good. No surprise in Iceland. The bathroom was large and clean.
The breakfast was the best we had in Iceland in our 4 days. Included with the room. A young man cooked us scrambled eggs to order, but the items they had out for us were excellent. (Breads, cheeses, meats, etc) The little espresso/latte/coffee machine was a nice added bonus.
