CenterHotel Skjaldbreid  Very good, 8.1 /10

Laugavegur 16, Pobox 5378 - 125 - Reykjavik, 101 Reykjavík 

http://r.bstatic.com/images/hotel/max300/285/2856847.jpg  http://q.bstatic.com/images/hotel/max300/179/1796520.jpg 

This hotel is situated on the main shopping street, Laugavegur. All rooms include free wired internet, tea/coffee facilities and a fridge. Reykjavik Art Museum is a 5-minute walk away.
CenterHotel Skjaldbreid’s top-floor Vegamót Bistro & Bar offers both regional and international dishes. Daily fish specials are among the highlights. During summer, guests can eat out on the terrace.
A free internet computer is found in the lobby. Guests can book airport transfers at reception.
Skjaldbreid CenterHotel’s location provides easy access to bars, clubs and boutique shops. The geothermally heated Sundhöllin Swimming Pool within 15 minutes’ walk.

Hotel Rooms: 33, Hotel Chain: Centerhotels.