Hotels Reyjkavik

We booked at Reykjavik Centrum for this spring after looking at hotels for several days. It seems to meet your requirements too.

I support Suki's vote as well. Reykjavik Centrum is a good hotel.

Last time we stayed at the 4th Floor Hotel and this time we will be at the Loki 101 Guesthouse.

I have stayed at the Canopy three times. It is a wonderful hotel with an amazing included breakfast. Centrally located.

However, it is the noisiest hotel I have every stayed at. Especially on weekends with clubs all around.

I won't be staying there again due to the noise. But if outside noise doesn't bother you, it's a good choice.

mikliz97 mentioned Loki 101 Guesthouse, which I stayed at for 10 days back in August. I loved it -- perfect location. It is right at the Hallgrímskirkja and the no.8 tour bus/company pick up location, and two doors down from Cafe Loki, as well as a central location for walking to other areas of Reykjavík.

I would only caution though that anyone looking for a hotel and standard hotel amenities, should be aware that Loki 101 is a guesthouse. Key is that the bathrooms are shared facilities. On the other hand guests have a fully equipped kitchen, which I thoroughly enjoyed having available.

Reykjavik is so compact (and bus accessible) that you likely won't get a mid-range hotel right on the main commercial drag (Laugavegur) even nearby streets. I would check out what's on booking.com and even look at airbnb in a residential part of the city. It's immensely walkable but lodging is super expensive (and will be especially at the time you're going).

VAP--Yes, your posts definitely influenced our decision to stay there:)

We were booked to stay at Reykjavik Centrum before canceling our trip in June. It has good reviews.

Loki 101 Guesthouse contacted us a while ago and they have closed permanently. We rebooked with Hotel Fron. This was probably a month or so ago, and at that time, there were not many places left that were not absolutely insanely priced. We are still unsure if we will make this trip due to Covid, but are keeping our fingers crossed.

We stayed at Hotel Fron in the summer of 2018. Our only complaint was that the breakfast room was too small and understaffed. If the hotel isn't at full capacity, that shouldn't be a problem.

Maybe not as centrally located as you might like, but right by a bus stop and less expensive, we stayed at the Hilton Reykjavik Nordica. We thoroughly it.

I stayed at Center Hotel Plaza in late October last year. Great location, comfortable, not super expensive, reliable (and the same) breakfast every day. Close to bus stop #1 at City Hall. No parking on site, so if you're getting a car, it might not be a good idea.

We have stayed at apartments which we found on booking.com.

In December 2018 we stayed at Grettir Apartments on Grettisgata in Reyjkjavik. We booked it through booking.com. It's centrally located and easy walking distance to everything. We were there for seven nights so it was nice to have a kitchen to prepare breakfast and snacks.

In December 2018 we stayed at Grettir Apartments on Grettisgata in Reyjkjavik. We booked it through booking.com. It's centrally located and easy walking distance to everything. We were there for seven nights so it was nice to have a kitchen to prepare breakfast and snacks.
........

Hmmm!
Did you see Santa Claus riding his sleigh over rooftops ? :)
Unless there is a really good reason to be in Iceland in December. . .I would not attempt to be in that part near the Arctic Circle that time of year.
The northern part of Iceland  straddles the edge  of the Arctic Circle.

There is not much you can do outside because daylight only lasts two to three hours. And when it is daytime it is always cloudy and dreary.  During the colorful Aurora Borealis -- also known as northern lights events. . .the extended dark days are perfect for watching this natural phenomenon.
Don't expect it every day though.
The weather is so unpredictable and showers are off and on during the 24 hours.

I spent more than three months in 2008 in Keflavik at a Naval Base with a group of civilian engineers under contract with DoD to decommission the Air Base after operating since the end of WWII.
Keflavik is about 18 miles from Reykjavik. It has  been taken over by Icelandic Military but turned unkempt for lack of funds.
So now, it is slowly being reactivated since Russia's annexation of the Crimean Peninsula in southern Ukraine.

Don't get intimidated by the name ICELAND. . . since it connotes cold condition as in ICE.

Very seldom it dips below freezing even in December. Average temperature is 29 F low to 45F high.
Hotels in Keflavik are no different from nearby Reykjavik.
Prices range from guest houses with bunk beds for less than a hundred dollars to around $700 a night. You get free WiFi from most hotels.

Rob--Our kids spent several days in Iceland over NYE a couple years ago. They loved it! They did a tour of the Golden Circle one day and the spent the other days at the Blue Lagoon and just checking out the city. Our daughter did say she was the coolest she had ever been, but she gets cold very easily. I would absolutely love to go that time of year!

Well, I went to Iceland in December and loved it!
Breakfast in the hotel was by candlelight, I did get to see the Northern Lights, and it felt quite Christmassy.
I would go again in winter.
It wasn't so much cold as very windy.
I was there four nights, and I think the coldest it got was -10C.
It only snowed a teeny bit, and wasn't icy for walking.
Of course, every year is different, but I really loved the short days and long nights.