Don't be put off by the drab grey house you see on the picture on the guest house's website (most of the houses look like that in Reykjavik except for those in the historic center). The inside of the guest house is superb. Rooms are beautiful, clean and quite big. Magnus is the only employee we saw and he was quite friendly and extremely kind enough to wait up for us since we didn't check in at the hotel until almost 1h in the morning.
Like everything else in Reykjavik, prices at this guest house are not cheap but since we stayed there before April 30th, we were able to get a great deal: 3 nights for the price of 2. That was worth the whole trip!
The breakfast buffet is great: different kinds of bread and crackers, different cheese pastes, meats and cheeses, cereals, jams, yogurt, etc. Unfortunately, no fruit. The guest house will also let you use the kitchen if you want to cook your own lunchs and dinners.
The guest house is located about a 15-20 minutes walk from the city center but only a 5 minutes walk from the Nordic cathedral.
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