The excursion will probably pick up from any hotel as long as you tell them. By July there will be very little darkness. Choice or hotel will be purely on price so no particular suggestion. However it might depend on which spa you want to use. There is a nice one by the national stadium so yo have load of international stuff there including the grand. If however your night life needs to have music and drink then head down town

Great idea to take advantage of this, and, as mentioned, the long hours of daylight in July make this an ideal time to visit.

Here are a few ideas on what to do: http://www.notabletravels.com/destinations/atlantic/Reykjavik/Reykjavik.html

<<< We plan to take the flybus into central Reykavik >>>

Unless things have changed since last year the flybus takes you to the bus station on the outskirts of Reykjavik, from where you get bus or taxi into the centre.

According to the flybus website they take you to the bus station for one price (3500isk / $27 RT) but for another price (4500isk / $35) they offload you to "smaller" buses and take you to your hotel.

How far "out" is the bus station? On google maps it looks rather central. Although the only hotels I've found so far appear to be close to a mile away from it.

I found two hotels on Ranargata - the Metropolitan Hotel and the Gallery Guest House. I also found the Hotel Cabin on Borgartúni. Has anyone heard of any of these - or know the general locations?

I stayed at Hotel Cabin last year and thought it was a great value. It's not in the center of downtown, but it is easily walkable (less than half an hour) and as a previous poster mentioned, all tours will pick you up/drop you off at your hotel. I'd say if you stay at a hotel a bit out of downtown like Cabin, it's worth it to pay the extra $7 to be brought from the airport all the way to your hotel. More info and pics in our Iceland post at http://patrinadoestheglobe.blogspot.com/

The bus station is far enough out of the city to make a walk, with luggage, to your hotel feel more like an expedition, particularly if the weather isn't favourable.

I don't have experience of the hotels you've listed, but Borgartun is far more central than Ranargata as it runs pretty much parallel to the main shopping street, Laugavergur, and most of the best bars/cafes and restaurants are within short walking distance.

Thanks for your replies.

Katrina your blog was very informative. Question - you mention "the town square" - can you be more specific. The guide books mention a couple but don't seem to say the one is "the" town square. Where exactly is the "center"?

So now I am really confused. According to google maps the cabin inn on Borgartun looks way more out of "center" than Ranargata. I looked at Frommers and Rough Guides on-line and the areas they mostly talk about are around the lake (Tjorin) and between there and the harbor.

We will only have four hours at best to take a "walk" around the whatever is the most interesting area before our excursion tour. We won't have any evening time at all and aren't interested in shopping, museums, good restaurants or nightlife on this trip. It's simply to see the "historic" areas that the tourist would find most interesting. Do a little walking tour, take some photos. According to all these hotels the Flybus will drop off/pick up, and so will the excursion tour buses.

So given that info are your suggestions still the same? Anyone else?