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Favorite places to rest your head in Iceland??

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I'm planning a late summer/early fall 2015 trip to Iceland and from what I gather, there tends to be more farm stays, self-catering cottages, apartments, and B&Bs over traditional hotels, atleast outside of Reykjavik.

I am also seeing a lot of people make mention of "booking your trip around where you find accommodations" - either because things sell out, inventory is limited, etc.

So let's have it - favorite places you've stayed in Iceland? Anywhere in the country. Bonus points if it's more than just a single room with a bed and bathroom (traditional hotel - although if you have a favorite, I'd love to hear that too!). Go!

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