Thor Guesthouse (Skolavordustig 16, Reykjavik) is advertised as 'a great little guesthouse in Reykjavik' and it certainly is. The guesthouse is located conveniently near the central area of Reykjavik, within easy walking distance of the downtown area, the harbour, many attractions as well as the famous Hallgrímskirkja church.
The facilities are adequate without it being a hotel. There is free wi-fi throughout the single floor guesthouse. Bedding is provided, although when stayed it was the summer and what was provided was sufficient, although in the winter that may be different. There are communal toilets and showers, and we never found it a problem with them being booked up. There's a kitchen/communal area where there's a coffee machine, microwave and hob. Sadly there was no oven, which limited what we could cook. Also there was no laundry facilities available to guests.
The view from our room was pretty good, we could see over the buildings next to us and out to the sea. There are a few supermarkets nearby, so buying groceries etc was pretty straightforward.
Our double room cost about Kr13000 per night for the two of us. Now, that's not cheap, but when you consider the other prices you'd have to pay for a hotel, or for less well placed accommodation, that wasn't too bad value.
Getting to Thor Guesthose is pretty easy . If you take the FLY-BUS to Reykjavik bus terminal BSI it's a short walk to the guesthouse (recommended only if you are travelling with light baggage/rollers). Otherwise you may want to consider take a taxi, which you can pick up from the bus terminal. Note that the entrance to the guesthouse is from Odinsgata (not Skolavordustig). Once inside, you'll need to take the elevator to the 4th floor and walk up one flight of stairs.
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