We loved our hotel in Reykjavik. The only downside is on the weekends, the bar across the street did not close or quiet down until 5 AM. We did okay sleeping through it, with the exception of our very light sleeper Pickle. But really we were fine. We stayed in the luxury suites at the Reykjavik Residence Apartments. It was lovely.
Worth every penny. When you say to the girls: What was your favorite part of Iceland? They responded: the hotel.
We were so cold in Iceland, we had a nightly ritual of drinking hot chocolate and eating popcorn. This is where family togetherness happens!