Rekholahreppur HI- Hostel

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This is an interesting hostel because it was originally built in the 1940s as a rooming house for farmers who were developing a very white breed of sheep. There were 7-9 of these government farms and agricultural houses built over Iceland, and now only one remains. This one has been converted to a hostel through Hosteling International and is run by a total hoot of a guy. He's got a hot tub and a sauna, and a great view.

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