A lot of reviews mentioned the hotel having a poor location. For us (appreciating that we are able to walk and others may not be able to), the location wasn't a problem at all. It took us 30 minutes to walk to the sun voyager/ to the centre of town and was no issue. We did go in late Feb and there was a little bit of snow/ice on the paths - I can see how it might be more difficult in December/ Jan. However, if it is icy, there is a bus stop right by the hotel will will get you into to town in about 5 mins.
Overall, the hotel was clean, comfy, and just what we needed after 3 days out in the mountains. The Lor coffee was a great touch and very much appreciated! Would definitely stay again if we came back to Reykjavik.