This was by far the most expensive and the worst hotel we stayed at in Iceland. Our room was tiny - it may be big enough for one, maybe even two people, but three - no way! Our beds were squashed together, and because there was no air in the room, my bed was right under the open window. My pillow should have been thrown away 5 years ago, it was so old and 'bumpy'. But there was no-one in attendance to ask for a replacement pillow! Bathroom was in a terrible state - moldy, hooks broken (I have pictures to prove).
There isn't even a chair to sit in this hotel's 'lobby', those couches you see in the hotel picture are a lie - the couches are in the restaurant, which opens at 8 am and closes right after breakfast. Breakfast was another story - there is only ONE guy trying to cook and server everyone! I asked for a napkin, and was told 'we don't have any'. He served a few pancakes, which were gone in a matter of seconds.
Please don't stay in this dump. If there is nothing else in Vik, just keep going. Highway 1 is nice, and you'll be in the next town in a few minutes.
I can't believe I paid $325 for this! The owners should be ashamed of themselves for this extortion. I hope booking.com stops using this property.