I stay at the Eldhestar whenever it is available. Being a photographer, I travel to Iceland a lot (19 times in the last three years). This hotel has the most bang for your buck. Great rooms, nice people, and you get to say hello to the horses each morning on your way out. Near the Golden Circle, Reykjavík, the south coast, and even a day trip to Jökulsárlón is easily doable. I always come back to Eldhestar, and will continue to do so.