We stayed here on the last night of a group tour. I really wish all the hotels we stayed at in Iceland were this nice. The beds are comfortable; the shower was glorious. The breakfast was amazing. Absolutely top notch.

This is a new hotel within walking distance of the main tourist/shopping street in Reykjavik. It is very close to the bay and right next to Lake Tjornin. The rooms were very quiet. We stayed here at the beginning and end of our Iceland trip. It is a further walk to Hallgrímskirkja, but very doable, as Reykjavik is very small. The rooms were fairly clean, but small for the price. They do have an upscale restaurant in the hotel. Breakfast buffet is included, which was expansive and wonderful. We did not care for the dinner menu, but just not our preferences, other guests seemed to really like it. The breakfast staff were great. The hotel states that you can order room service from the restaurant but this proved difficult, as it took several phone calls and eventually the front desk had to get someone from the restaurant to call us back. (My husband was ill on the weekend, and I was able to walk to a local market to get some drinks and fruit to bring back for him.) The front desk staff were not friendly. The hotel apparently has a roof top terrace, but we were not aware of this until looking at their website later. There are a few snacks available for purchase next to the front desk and the lobby is very nice. I would have given it four stars if the staff were a little friendly (except for breakfast staff) and if the room was just a little larger.

The Hotel Reykjavik Saga has everything you want: location (walkable to all of the downtown sights), design (stylish), condition (it still looks new), service (the front desk is very helpful), breakfast (a beautiful hot and cold buffet), and comfort (great rooms with really nice bathrooms). When I return to Reykjavik I will definitely stay there again!