I would consider this more of a hostel than a hotel. The common areas (entry, halls, stairwells) looked very sketchy - as soon as I walked into the building, I considered cancelling my booking. However, the room was okay. It had what I needed, was clean enough. The water smells kind of like sulphur. The location is great for walking around Reykjavik and driving out of the city. Free parking a short walk away. If they cleaned up the entrance and slapped on a coat of paint, it might even warrant another half star.