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Guesthouses in Reykjavik Iceland

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We're heading over to Iceland for 3 days in July. I assume from what I've read so far that Reykjavik is a good place to base ourselves. I don't want to spend a fortune on a hotel since we will likely be spending most of our time outside of it. Can anyone recommend a well located, comfortable guest house or hotel for under $100 USD per night? My only other "need" is a private bath. Thanks for any advice!

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