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Nice hotel in Reykjavik

Looking for a nice hotel or apart hotel or Airbnb central to sights in Reykjavik that has rooms for a family of 2 kids and mom and dad. First hand experience is preferred. Thanks! Location is the most imoortant to us. Want to walk as much as possible.

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Look at Hotel Fron. We stayed in the 2 bedroom penthouse apartment and it was wonderful! Lots of room, large enough kitchen, a dining table as well as separate sitting area. The hotel is in the heart of downtown which is nice.