I stayed for one night in the Guesthouse Arny (Gistiheimilið Árný) upon recommendation of a friend. Its located about 5 minutes walk from the ferry port. The Westman Islands are so small (just 4x7m) that everywhere is close by. The swimming pool was just 100 meters away and the start of the lava fields about 10 mins walk.
The accommodation is split over 2 floors. I was in the ground floor (a basement of sorts) which had 2 bedrooms and a shared kitchen and bathroom. The beds were ok, not very comfortable; there was a TV (with English channels); but the room was very basic. But then again I think all accommodation on Vestmannaeyjar probably is.
The self catering facilities are a great idea as there are few restaurants on Vestmannaeyjar and they are expensive – I recommend Pizza 67 as being cheap and nice.
Overall good experience. The lady that runs it was friendly and the price (ISK 4,000) did seem too high. more