Berunes hostel is on a century-old farm run by affable Ólafur and his family. The wonderfully creaky old farmhouse has rooms and alcoves, plus kitchen and lounge; there are also rooms in the newer farmhouse, plus a campsite (1750kr per person) and en suite cottages. Breakfast includes homemade bread and cakes; there’s also a summer restaurant (or BYO food supplies).
Non-HI members pay a little extra, or can purchase membership at the hostel.
The hostel is 22km along the Ring Road south of Breiðdalsvík, and 40km from Djúpivogur. There are excellent hiking trails from the farm.