I'll start with the good:
Location: Close to the water and walking distance to shopping, museums, and restaurants.
Room: Our studio had a kitchenette with a 2 burner hotplate, cooking equipment and utensils, so I imagine you could whip up yourself a meal there.
Hosts: Though I never met this mythical Gunnar, the young guy that was working there was very nice. I enjoyed chatting with him and he was very helpful in helping us with some issues.
Needs Improvement areas:
Building: Building itself is older. Though our room was clean, just like the rest of the place, it needed some TLC. Some chipping paint, peeling moulding, etc. Additionally, better signage would be helpful (i.e. where the manager is located when guests are arriving), the shared areas could be cleaned up and organized better as well.
Bathroom: The bathroom was tiny. The shower was even tinier. My biggest issue with the shower was that it was nothing more than an elevated platform with barely any shielding. It was also enclosed with a shower curtain, which clung to me as it tried to shower as quickly is as possible. Because it's not an actual enclosed shower unit, floor gets pretty flooded. Shower curtain was also brown at the bottom, mold or dirt - it needs to be changed. Also, because Reykjavik uses geothermal hot water, it has a rotten egg (sulfur) smell. This is the case everywhere, so it's not per se an issue with the place. That said, because the bathroom is tiny you have 2 options: 1) Close the door and deal with a sulfur gas chamber, 2) open the door to the bedroom and dilute the gas, but stink up the rest of the place. Not very pleasant. Another ventilation option would be nice.
The room: Aside from the age issues (i.e. peeling paint), the room was pretty dark. The light fixture provided barely any light and was dim at best. I had to take of the shade off the lamp shade to create sufficient lighting.
Overall, OK for the money paid. We booked late, so beggars couldn't be choosers. That said, I would plan further ahead next time and stay somewhere else. It's fine for younger folks on a budget, but if you are long past your hostel days and desire some standard of living, check out the Embassy apartments few blocks away.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC.