To begin with my partner and I were put in 2 single rooms, obviously being gay is unheard of in Iceland! One of the rooms in the basement was disgusting - just like a prison cell, dirty and tiny. Then after asking for a room together we were put in a room in the loft where nearly the whole roof was in a slant, so you could only stand up by the door. The TV and half the lights did not work. If you only intend to sleep in your room fine, otherwise avoid like the plague!!
So impressed with this hotel - our stay was for 4 nights, bed and breakfast and was SO reasonable! The room was small, but workable as was the en suite, but all immaculately clean and perfectly functional. Hot water all the time and the shower was powerful, unlike in some cheaper hotels. The breakfast was continental, but absolutely fine to set you up for a day's outing. The staff were really friendly and helped us organise lots of trips. The location was faultless - right in the centre of it all, and next to the huge cathedral - so you could always find your way back to the hotel! Free tea and coffee 24/7 was really impressive, considering we paid Â£1+ for the same machine tea and coffee in some places! Would definately recommend.
We stayed for 5 nights at the Leifur Eriksson. The hotel has a great location in Reykjavik with free street parking over the road. As others have said the room is small and functional but not incredibly clean. The hotel staff were friendly and helpful with bookings for trips and restaurants. Breakfast was okay but the room got incredibly busy at some times leaving some guests without seats. The breakfast room however, could be used in the evening for having a snack of having a complimentary drink. It was good value for money -especially with stay for three nights get one night free but if you intend on spending much time in your room this is not the place for you.