We stayed at the City Centre Hotel from 28th Jan to 31st Jan 2013. We can't recommend it highly enough. It is small with only 30 rooms but has a 24 hour reception. Our room (505) was great with a very comfortable bed and also has a balconey. The staff were all so friendly and helpful. Breakfast was very good with plenty of choice. There is a micro brewery inside the hotel and the room is also used for breakfast (it didn't smell of beer). The micro brewery opens at 4pm for a 3 hour happy hour. They have several beers on draught and over 100 in bottles!! The location in downtown is perfect for walking to everything around the city centre. The hotel doesn't serve food apart from breakfast but you are only seconds away from many places to eat and drink. The only surprise for those who have not been to Iceland before is that the hot water smells of sulphur (but is harmless).