When visiting Faskrudsfjordur, Fosshotel Eastfjords is a great choice to consider. You can grab a bite to eat at the restaurant or wind down at the end of the day with a drink from the bar/lounge.
One of the best stays in IcelandPros: Very beautiful hotel with a great history. Ground floor room with a patio right on the water. Rooms were very comfortable and beautifully designed. Definitely worth a night. Breakfast was very extensive and satisfying.