Hotel Leifur Eiríksson
Across the street from the hilltop church of Hallgrímskirkja, this hotel is a short walk from most of Reykjavík's major attractions. Some guest rooms have balconies. Interiors are cozy, with hints of Scandinavian design here and there, and give off the vibe that you're staying with a good friend instead of at a nondescript hotel.