My wife and I stayed here in late October of this year and were pleased with the facilities. From what we could tell these were all brand new rooms that had just been built. The rooms were smaller, but very clean and the owners were extremely nice (as was everyone in Iceland). Trip advisor has this listed as a bed and breakfast, but when we stayed they did not offer breakfast, but instead recommended we go across the street to the "Cowshed Cafe" for breakfast… which I would recommend that you go there to eat, but just not for breakfast as it was quite expensive for just a buffet.
The Vogahraun is also a restaurant, which we ate at while we were there. The food was very good (we had a pizza) and the service was very fast. They give you a discount on all the menu items if you’re staying there as well as a discount if you stay multiple nights!