We just returned from Reykjavik where we stayed at the Loftleidir and the Radisson Saga. We chose the Loftleidir for a night because it was convenient to the domestic airport and didn't expect much given reviews we'd read. We were somewhat pleasantly surprised. Though the decor was very 1960s, the hotel was comfortable and the staff was very friendly and helpful. We were able to check in right at 9am when we arrived and our room was basic and very quiet. Dinner was as expensive as other hotel restaurants in town but only okay. All in all, I felt this was a better value than the Saga. If you don't mind a 20-30 minute walk to downtown, it's a fine place to stay.

Reading around I was prepared for the expense and general 60s concrete block styling of a lot of Icelandic Hotels. As other reviewers have noted, this hotel won't win any beauty contests! The lobby's had a makeover and has a funky 70s feel.
Rooms, drab decor but spotless. Husband liked the runway view - it's Reykjavik so only small domestic aircraft. Breakfast, plentiful but not great buffet, somewhat haphazard service. Drinks are (as everywhere) expensive, and it was usually a battle to find someone to serve in the bar. Maybe it was because we were there the night of the Eurovision semi-finals, and most of the Icelanders were hiding in shame (but honestly, I thought Sylvia Knight was great!!!). It's a bit of a walk into town, but we did it two nights and relished the walk.
Only sour note was that I'd booked one room for me and husband, and one for a friend via a reputable travel website- so room rate paid in advance. They tried to charge my friend full whack when he checked out and it took us a long time to get sorted.
The advantage of being next to the airport is that you can follow the airport signs to get to the hotel.
Strictly adequate, but it sounds like unless you're really prepared to fork out a lot, this is just par for the course for the location.

This was a really nice hotel, stayed in the front overlooking Perlan, so great views. The breakfast buffet was very good and the rooms were clean. It's a bit of a walk from town, about 30 mins and taxis are about 1000KR. There is a bus, but when it's cold, you don't feel like standing there to wait for it. It was very convienent to get to and from when we hired a car, so that was handy.

My wife and I stayed at the Hotel Loftleider approximately 5 days back in June, 2005. I do not recall the exact dates as it has been almost two years. The Hotel Loftleider was a good experience for us. The hotel was clean, well-staffed, and tidy. The restaurant was pricey but the food for pretty good. I would recommend this hotel to anybody.