Great little hotel! Check-in was just a phone call to the proprietor and he told me which room to go in, and that I would find my key on the table (which it was!).
Hotel was right on the street, but it was quiet.
It was very clean and roomy for an Icelandic hotel. We had three in our party (Me, my wife, and our 26-year-old daughter) and they had a fold-out couch for our daughter to sleep on. Extra linens were in the closet. (Except for the excessive snoring in the room, she slept great....)
Good restaurants down the street and across the street.
Parking was off-site (on the street), but there were no issues.
Wifi was faultless. TV worked fine and we found English channels.
Vessmannaeyjar is a charming island with a lot of interesting things to do: (look for puffins; climb the 1973 volcano; go to the Volcano Museum - very accommodating proprietor there, as well....)
Breakfast choices were limited but we found a decent donut shop kind of around the corner from the hotel.
Highest marks to these folks! I would visit the island again, and I would certainly stay at Hotel Eyjar again!