Ive stayed at the Reykjavik City Hostel for a few nights in a comfortable double room. It has a comfy double bed with a big bathroom. The hostel is set in a nice location in Reykjavik, Not really in the heart of the city centre, but that didn't mather to us. Next door there is a very nice swimming pool, so make sure you visit it. The walk to the city centre is I think the most nicest walk what you can get, at your left the city ""sky line"" and at your right the ocean and mountains.......Also the flybus will drop you off at the hostel wenn arrving from the airport.