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Whoever said you need a lot of cash to stay at a hipster hotel? Even more than a place to sleep, Kex, set inside an old biscuit factory near the waterfront just a 10-minute walk southeast of the center, has become something of a scene with its lively gastropub Sæmundur í Sparifötunum, heated outdoor patio, and vintage barber chair (where a third-generation barber actually gives cuts on Thurs nights). Decorated mostly with found and salvaged objects, the sparse, clean accommodations with polished concrete floors are divided between private rooms, some with an ocean view and private bathrooms, and 4- to 16-bed dorms, both coed and female only, with electrical outlets and lockers for each guest.