Just returned from a 3 night weekend. Exterior of hotel is off putting but it is well located and the staff were friendly. Rooms are on the small side with wet rooms instead of bathrooms. We had booked 2 deluxe rooms (with sea view) for the 4 of us but in fact none of the rooms had a sea view! King size beds were comfy with soft sheets and black out blinds helped to keep the 24 hour daylight out. The TVs did not work until we asked reception to fix them (which they did). Amazingly, the coffee making facilities in the room included only flimsy disposable plastic cups with a cup holder. There were no tea bags - just instant coffee and fruit teas. I have had better in cheap motels!!
The breakfast was variable and the contents were somewhat random with bacon available on 1 day but not the others, fruit yogurt on one day only and no bread rolls on the other day.
top tip - take your own teabags and a bottle of wine!

If you are staying at the CenterHotels Arnarhvoll, write it down before you leave home. I don't speak any Scandinavian languages, and sounding this one out generally won't work. Once you figure out how to communicate the name, though, you'll love every bit of the stay.

The rooms are spacious (at least for this New Yorker), clean and comfortable. I particularly liked the bed, which had two single bedspreads to prevent the nightly tug of war. Desk space is ample for workaholics, and I pretty much ignored the sleek flatscreen TV (but it might be a draw for some). The view of the North Sea and mountains in the background was amazing.

Many European hotels boast a free breakfast. They toss out some croissants and coffee-- not much else. The Arnarhvoll is different. We were offered a wide selection of fruit, cold cuts, vegentables, waffles and pastry. The coffee was excellent. I ate well and enjoyed it. Normally, I skip hotel-offered breakfasts. Even better-- if you have an early flight (and have to leave the hotel before 6 AM), they will serve you breakfast in the lobby. Apparently, 4 AM is not a problem.

I have only been to Iceland once. On my next trip, I'll be looking for this hotel.

The Arnarhvoll is the new hotel from the Centerhotel group in Reykjavik. They own many hotels in the downtown core of the city and we had previously stayed at Hotel Skjaldbreid.

The hotel only opened for business in August 2007 at half capacity. We stayed there in March 2008 and there was still some minor work continuing on the ground floor. From talking to various staff, the hotel will be completed for the summer season of '08.

The hotel is situated two blocks from the main street, Laugevegur. The hotel faces onto the water with great views of Mt Esja from all the north facing rooms. Across the street construction for the new Opera House continues nearly 24hrs a day. However we never heard a thing at night-time, so we didn't see it as problem. This is slated to finish in 2009.

The building was converted from some old government building and has a very stark exterior. However inside its a different story. The rooms and lobby are very tastefully decorated in what could be described as 'Ikea minimalist chic'.

The rooms are a little on the small side but that's what you expect in Rejkavik for a mid-level hotel. The bathroom is more a wet shower room. A glass door is pulled from the wall to act as splash-guard. We stayed for a week and space never really became an issue.

Breakfast is served in the top floor restaurant/bar. It has fantastic 270 degree views of the harbour, mountains and downtown. Breakfast is a big buffet with both Nordic and standard continental tastes catered for. We especially loved the various breads and pastries.

The great thing about this hotel is that it is only two blocks from the centre of all the action in Rekjavik but faraway enough that you're not affected by noise.

We spent 4 nights staying at the Arnarhvoll. Admittedly when i first arrived i was not too impressed with the exterior. However, we were met by very friendly stuff who are always at hand to offer help, advice or just a chat. especially Paul who works in the evenings! the hotel offer spectacular views over breakfast and dinner of the bay and the fisherman at work. The decor is minimal but comfortable and of course warm. The staff are willing and able to help you organise tours and drop offs to the airport. Alternatively you can walk down to the shops and the main sights in a matter of minutes.
Make sure you ask for a room with a view..........