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This modish hotel/hostel amalgam from hotelier Klaus Ortlieb—who also created the Gotham Hotel in New York City and Claridge’s in London—is proof of how diverse Reykjavík’s hotel scene has become. Inside the five-story building, which dates to the 1930s, you’ll find a mix of design elements, such as a lobby modeled after the colorful streetscapes of Reykjavík to contemporary rooms, most with balconies and spacious sitting areas, filled with colorful accents, neutral furnishings, and a minibar stocked with local products. The third and fourth floors are reserved for the hostel, where 4- to 14-bed dorms have large lockers under the bed, plus two guest kitchens and an extra lounge. Hostel-goers also have access to all hotel facilities. Plenty is happening downstairs too, such as a craft beer and cocktail bar, live music in the lobby, and a playroom for kids.