Reykjavik is way, way out there. It's one of those places that you question why or how human beings could live here. But that's the allure, isn't it? Beautiful landscapes that such a small percent percent of humanity ever get to see. There are no massive chain hotels here nor is there any sort of "resort" style hotel, but again, that's why you're here, isn't it? The hotels are noticeably "Icelandic" in style and feel with no real influence from the American way of doing things when it comes to hospitality. For getting a feel of the Icelandic way of life, staying in downtown Reykjavik is the best way to do so, and you'll be near all the hubbub of the center of Iceland.
Austurstraeti 3 (Front door at
Ranargata 16, 101 Reykjavik