Salvation Army guesthouse

A simple cheap hostel in the center of Reykjavik within walking distance of all the main sites. I had the sleeping bag accomodation which saved even more money as they only supply a fitted sheet, pillow, and towel. Bathrooms are shared, but my room included it's own sink and mirror and I didn't have any trouble getting into the bathroom or shower when I wanted. Breakfast costs extra and appeared very simple with deli meats, bread, and fruit. Instead I would recommend walking a few blocks to an excellent bakery just up the street. This place is nothing fancy, but if you want to stay in the city center without breaking the bank I would highly recommend it.