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    I don't know how much near you want to be, but try the Edda hotel in Nesjahverfi, near Hofn. They have among the cheapest rooms in Iceland, plus they could also have a dormitory for the sleeping bags.
    You can ask them here:
    http://www.hoteledda.is/en/about-us/fyrirspurnir over 7 years ago

    Answered by Eirinn via Site_iconWorldNomads.com

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