Due to the extremely high prices of just about everything in Iceland, we found the Hotel Edda chain to be a nice option. This was a particularly big Hotel Edda and not the nicest one we stayed at, but it was just fine. The room was clean and bright and the staff was friendly. Laugarvatn is a pretty resort area that serves as a weekend getaway for people from the city, and this hotel was right in the middle of town. I recommend this hotel for the budget-minded traveller. more