Between the quality of the room, restaurant, and its location, this was probably the best hotel I stayed in during my entire trip to Iceland.
It's ideally situated on the southern end of Lake Myvtan where you're within 15-20 minutes drive to Hverfell Crater Mountain, Grjotagja Hot Spring Cave (where Jon Snow and Ygritte got it on), Dimmuborgir lava field, etc.
The room itself was excellent. Bed was really comfortable, shower water pressure and temperature were great, plenty of electrical outlets (rooms that only have 2 or less is a pet peeve of mine), the bathroom was clean enough I didn't feel the need to wear slippers, and the room size was probably above average compared to the other places I had stayed.
Service itself was par the course and I mean that in a good way because all the hotels I stayed at in Iceland had excellent service.
Restaurant shines, though. Not a diverse menu but the dishes they do serve are amazing. Included some local specialties that you won't find in other areas of Iceland and everything tastes so fresh - esp the trout.
Note: this being near Lake Myvtan, depending on the time of year you visit you will get absolutely swarmed by the midges outside. Best I can compare it to is large gnats or tiny mosquitos (but they don't bite). A credit to the hotel that they seem to be able to keep all of them out but yea when you're in the parking lot you'll have to fight through them a bit.
That being said, I would absolutely stay here again.