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We have 5 hotels in Skogar.

Hotel Skogafoss        

Close to the foot of the Eyjafjalla Glacier, this secluded hotel overlooking vast countryside is a 5-minute walk from the Skógafoss waterfall and 2 km from the Skógasafn folk museum.The cozy, warmly decorated rooms offer flat-screen TVs; some add bunk beds.Complimentary perks include parking and a breakfast buffet.
Skógar Guesthouse        

Located within the scenic parkland of Skogar, Skogar Guesthouse provides comfortable accommodation and a full range of facilities, including wireless internet. It is ideally positioned for those wanting to sightsee in the area.Those staying at the guest house have access to its wide range of outdoor activities, such as fishing and horse riding.
Hostel Skogar Star Rating 3        

The Hotel Skogar is located in Skogarfoss making it one of the best hotels to stay at while in town. The Hotel Skogar boasts a convenient location with modern amenities in every guestroom and superb service. Each guestroom features amenities such as non smoking rooms, bathrobes, hair dryer, television, shower.
Edda Hotel Skogar Star Rating 2        
861 Skogar/Hvolsvollur

Set in lush, hilly terrain in front of the Skogar forest, this unfussy, seasonal hotel is a 5-minute walk from the cultural exhibits at the Skogar Museum and 2 km from the Skógafoss waterfall.The spare, muted rooms sleep 1 to 3 people and have in-room washbasins and desks. Bathrooms are shared.
Guesthouse Drangshlid Star Rating 2        
Drangshlid 1

Situated between the southern Icelandic coast and the famous Eyjafjallajökull, Guesthouse Drangshlíð is just 35.4 miles from Thórsmörk National Park. The property offers free internet and the staff can organize horseback riding and jeep tours.
More on Skogar .
Skógar, literally forests, is a small Icelandic village with a population of roughly 25 located at the south of the Eyjafjallajökull glacier, in the municipality of Rangárþing eystra.