Frænka mín vinnur á hóteli þar sem margir ferðamenn sofa.

Frænka means a female relative in the ascending or collateral line, and in practice it usually covers both:

• aunt (your parent’s sister, or wife of your uncle)
• female cousin (on either side of the family)

Context normally makes it clear which one is meant. If it really matters, people sometimes add clarification (e.g. frænka mín, systir pabba – my aunt, my dad’s sister).

In Icelandic, possessive pronouns (mín, þín, hans, hennar, okkar, etc.) are usually placed after the noun:

• frænka mín – my aunt
• bókin hans – his book
• húsið okkar – our house

You can put the possessive before the noun (mín frænka), but that sounds marked/emotional or contrastive, roughly like saying “my aunt (as opposed to someone else’s)”. The neutral, everyday order is noun + possessive: frænka mín.