The hotel is a student residence turned into a hotel for the summer, which is common enough in Iceland. That being said, the facilities were good: private bathroom & kitchenette in the room. Clean, friendly, and with a decent breakfast buffet (more than just a continental breakfast). Given how expensive Reykjavik is in general, this hotel gives great value for what it is. It is NOT downtown, and you'll have a decent half-hour walk into the centre or a five-minute drive, although pretty close to the bus terminal.