These cute cottages and guesthouse are located in the biggest forest of Iceland.
I had a really nice stay here a few years ago. One I will not forget very quickly because in the middle of the night I woke up because two cats had decided to join me in my room. Apparently they did this sometimes and after the first initial shock, I was quite happy to have them. So in case you don't like cats (or are allergic), maybe don't stay in the main guesthouse.
They also have two really cute dogs. Animal lovers will like it here :)