If you are on the 5th floor or higher and facing the ocean, you get a nice view of the water front. It is a calm location, across the street is 24 hour convenience store / fuel station, nearby is a 10/11 (similar to 7/11) grocery store. Getting to downtown about 20-25 min by walking. Deluxe Room has a nice bathroom and more space. The staff was friendly and helpful. Breakfast was decent (included), selection of bread, cheese, ham, eggs, coffee, tea, apple and orange juice.
Standard room was not as nice as the Deluxe room. The Standard room was a bit small and smelled (maybe it was just the one I got) so I upgraded to Deluxe room. Once I upgraded I really enjoyed my stay. (upgrade about 25$). Perhaps it is a bit far from the downtown compared to the other hotels. You have to buy the Internet access.
Overall, I enjoyed the hotel. You will need to buy an Internet access card though. The hotel is reasonably close to downtown, easy transportation to/from the airport, convenience store opened 24 hours across the street. Also there is a bus station. You can order your rental car in the hotel for a reasonable price (compared to the Internet prices) and they pick you up at the hotel. Also numerous bus tours from the hotel are available (some lasting 10-12 hours). I enjoyed my stay. The Deluxe room was comfortable and clean. Don't expect many TV channels in Iceland though. Also the hotel has a bar opened until late night.
Hotel Feature Tip : If you are staying for more than one night and you want to use the Internet, purchase the 24-hour Internet access card (this gives you 24 hours of usage, not 24 hour time limit since the first use). Breakfast was decent and opened until 10. Check out is at 12.