This hotel is a reasonably-priced gem in a very expensive city. Location is central, one block from the main walking / shopping street, with easy walking to the seafront and the Harpa Centre. They do serve breakfast, but at 22 Euros it seemed a bit steep, so we passed and cannot comment on that. The menu looks attractive, however.
Now, for the most original thing about the Residence. Instead of building up five or six storeys, the owners have acquired about five separate, historic buildings along the same street (Hverfisgata), so you may not be staying at the principal address (number 45), but somewhere nearby. Not to worry! All the rooms we saw were lovely. Our building, at number 21, was a classic that had been used in the past as an embassy and an Icelandic government ministry. The inside has been completely modernized and everything works perfectly. Our studio-suite had a small kitchen and sitting area, as well as bed area and bathroom. The staff (with just one exception during our visit) is extremely helpful and of course their English is impeccable. At literally half the price of the Canopy Hotel around the corner, the Reykjavik Residence is a very attractive option.

The hotel was modern and quite comfortable; it was close walking distance to tons of great bars and restaurants; the check-in staff was very friendly. Parking was the only tricky part—we found a spot easily, but the spots on the street are pay parking on weekdays. My husband and I loved our stay here!

These folks did a great job. First class apartment with two bedrooms and a kitchen perfect for our family. Outstanding service. Good central location and very close to Pick Up Stop # 7 which is a very central bus tour stop.