Salvation Army Guesthouse hotel

There is no cheaper accommodation in downtown Reykjavik (it's about a hundred metres from the parliament building). The Salvation Army hostel offers clean single rooms and beds in shared rooms, with reasonable prices by Icelandic standards (in the dorm - you'll need a sleeping bag - about 22 euro, breakfast for 5). It's great, but must be booked in advance if you're going for a weekend. It takes 20 - 30 minutes to walk to the bus station for the airport or long-distance buses. Check in at 14. Reception is very friendly and helpful, and is open 24 hours. Near the hostel there is a convenience store