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This four-floor hotel set within three adjoining buildings sits right in the middle of Reykjavík’s primary shopping and nightlife zone. Parquet flooring and flatscreen TVs are about the only luxuries you will find here, aside from the street-facing rooms with balconies that look right over Laugavegur, one of the best people-watching seats in town. The hotel has 20 studio apartments with kitchenettes for only a slight rate increase over a double. The hotel gets extra props for getting early-morning arrivals into their rooms when possible at no extra cost.