On the Ring Road about 8km northeast of Klaustur is this mini village of 13 spotless, spacious, self-contained cottages that can sleep six (note: on the website, these cottages are called 'guesthouses'). A recent addition is a block of spick-and-span rooms, with and without bathroom. There’s also camping, plus outdoor hot-pots, and a simple shop and cafe.
Hörgsland
Southeast Iceland