Part hostel (set in an 1897 schoolhouse with a communal kitchen, dining area, and balcony), and part hotel (in a no-frills house with a balcony), this centrally located, family-run property has been serving visitors to Stykkishólmur in some form for 3 decades. Hotel Stykkishólmur may have better views, but this smaller hotel is more intimate and has a more central location, near the restaurants and the harbor. The rooms are quite basic no matter where your bed is, though they get plenty of light.