The CenterHotel Skjaldbreid is the perfect hotel to stay in Iceland. Is right on the heart of the city and is clean and affordable. Our room was next to the bistro and bar and we feel asleep just fine. we didn't hear any noises whatsoever.
The hotel offers free breakfast and the rooms are clean daily by the housekeepers. The staff is friendly and they have high speed internet on room and in the lobby. All excursion buses pick you up dircetly in the main door and drop you off really close to the hotel. Would recommend to everyone.

The CenterHotel Skjaldbreid doesnt get more Central in Reykjavic. There's obviously pros and cons to this but as long as you take ear plugs you cant go wrong! Reception and staff were friendly, room was small but perfect to use as a base if you're going to be out most of the time (There's no point visiting Iceland if you want to sit in hotel lobby's or your room), breakfast ample. Does what is says its gonna do - give you a roof over your head, a warm comfortable bed and somewhere to dump your stuff. As for the ear plugs, if your anywhere central in Reykjavik on Friday or Saturday night its chaos - the Icelanders but the Brits to shame for the sheer amount of alcohol they can consume - this is obviosuly accompanied by loud singing, smashed glasses, the odd fight and people stumbling everywhere so be prepared for some noise - the alternative is quiter more expensive hotels away from the central area.

We just spend a long weekend (from Friday to Monday) at Hotel Skjaldebreid. Overall the hotel was better than average: the service was very friendly, the room was in very good condition, the scandinavian breakfast was ok and the location was excellent at the main shopping street Laugavegur.
Rating is still average because of the location, here's the exaplanation: the street is probaply "the" main street for Reykjavik's youth for cruising with their cars and moving between bars at nights. Since the noise insulation is not adequate in the room, we were using ear plugs in order to sleep during the nights.
We would not go back to the same hotel because of the noise during evenings and nights. Since this is the only negative thing about the whole hotel, maybe I could recommend this hotel to persons who party a lot and/or are "heavy" sleepers.

We stayed here for a long weekend and this is not the hotel to stay in if you are expecting to get some sleep. The hotel has a nightclub next door which plays music until 4am. The music was so loud in our room we could hear every word to every song being played. We eventually changed rooms at 3am and the second room was quieter. The hotel is clean but basic. We would not recommend this hotel.