Fisherman's Village is without a doubt the best place to stay on the western side of Iceland. The staff are really nice and come by once a day asking if you need new towels, face cloths, coffee, tea, sugar or creamer, they're also nice to talk to and great if you need advice or recommendations.
Fisherman's Village also happens to be a guide hotspot as it's THE BEST place to see the aurora borealis without going much, much further out from Reykjavik. We had an absolutely amazing time here, and we will 100% be coming back.
My only advice to people is that Iceland gets much darker than we from europe or the US are used to, so enjoy seeing many more stars in the night sky.