I've stayed at Hotel Höfn a few times. As Icelandic accomodations go, it is very overpriced. The rooms are smaller than typical european rooms. The bathrooms meet their purpose, but are cramped. Restaurant downstairs is very good and the staff has always been friendly and accomodating. But for my money I'd rather spend 2 or 3 nights in a guesthouse for the price of one night here.