I stayed for one night in early June. The hotel itself is fine. It's close to the bus station. It's in the city center but not central to the city center (if that makes any sense at all). It was maybe a 5-7 walk to the end of the main shopping/restaurant street. The room was larger and very clean. The front desk was polite and able to store my luggage when I checked in early. The bed itself was comfortable and except for the person next door coming in loud and late (not something the hotel can control) it was quiet.
The only thing is that the area around the hotel looks a little sketchy. That being said, I'm sure it's actually totally safe--it's Reykjavik--it just looks a little run down--older buildings, not a lot of shops/restaurants, etc. around. A number of people had commented on construction, but I assumed since some of those were months ago that it wouldn't still be occurring. It was. However, I didn't find this at all a problem--they were working but only during totally decent hours of the day so it wasn't a problem. The construction site doesn't exactly add to the area's atmosphere, though.
Someone commented on the windows being dirty--if you have ever wandered around Reykjavik in the morning you will notice that most of the shopowners clean their windows ALL THE TIME--living on the water in a city with Reykjavik's weather conditions = dirty windows very fast. So while I agree--they are dirty--it's on the outside, and I don't know that it's a reasonable expectation to clean the outside of upper story windows constantly. That's not to belittle their comment, at all, but I don't think it reflects cleanliness conditions of the hotel in general. Just fyi :-)
So, in summary, the hotel itself is great. It was also EXTREMELY reasonably priced. I think the next time I would pay a bit more to be on or just off of the main street, but if I couldn't find somewhere I thought was decent for another $40 or $50 more I would happily stay here again.
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