Hotel Skogar has an excellent website that makes it look like a first-class destination hotel. Prices are correspondingly the most expensive in the Skogar area. My fiance and I did the (very challenging, at least by American tourist standards - we almost died) hike from Thorsmork to Skogar and booked a room at the Hotel Skogar to help us relax after the hike. I was especially excited by the prospect of the outdoor hottubs. I booked the room 3 weeks in advance over the internet. I provided my credit card information and received an e-mail (which I took with me) explicitly stating that I was "confirmed." When we arrived at the Hotel Skogar, the first thing I noticed was that it did not appear nearly as nice as portrayed on the website. It was just another of many comparable inns that we passed in Skogar on our way there. When I went inside, I told the woman my name and said that I had a reservation for that night. She said, "oh, I am familiar with your name. Unfortunately, there has been a mistake." She then told me that the woman who "confirmed" my reservation did not know what she was doing and that the Hotel had long been fully booked for that night (a Wednesday!). I can understand that mistakes sometimes happen. It's a small hotel, and if they don't have a room, they don't have a room. However, I had communicated with the Hotel Skogar solely through e-mail. I had checked my e-mail in a Reykjavik internet cafe only 2 days before. This woman knew we were coming and was expecting us when we arrived, but did not take 30 seconds, at any time in the 3 weeks prior to our arrival, to drop me an e-mail to tell me about the "mistake." We never saw a room at the Hotel Skogar, but, as I said above, from what I could see of the common areas, it did not look worthy of its premium price. Fortunately, the woman had made reservations for us at a farmhouse hotel about 4 km down the road - the Drangshlid, part of the Icelandic Farm Holidays consortium. When I told her we had hiked for 2 days, with packs, to get to the Hotel Skogar, she agreed to drive us to Drangshlid. Drangshlid was very nice and we loved our stay there, although we spent the better part of our time sleeping and recovering. A former farm-building has been transformed into a surprisingly modern (although still very European) hotel, complete with private baths. While we were there, we saw the innkeeper's 17 year old son mowing grass, fixing a truck, and serving us dinner. He also drove us back to Skogar the next day, and pointed out that he had helped construct the stairs leading up the Skogafoss waterfall. We would definitely stay at Drangshlid again - we stayed there and had a wonderful dinner (and breakfast) for less than the price of a room at Hotel Skogar. If you have time, Skogar is a beautiful place to add to your Icelandic itinerary, but don't be misled by a nice website into deciding to splurge at the Hotel Skogar - you may not even get a room and there are several comparable alternatives at a lower price.