We enjoyed staying at Hotel Island - the concierges were great! Security was good - pass keys for the elevator, and a safe in the room. Brunch was available and the service and food at restaurant was very good, but wasn’t always open according to their posted hours. The housekeeping was adequate.
The hotel is well situated to a pharmacy, grocery story, tech store where we bought local SIM cards, a 24/7 grocery store, Sculpture Museum where we got our City Passes which included free entry to many attractions, including the nearby pool with hot tubs, steam room.
It’s a short walk to the bus stop, where you can take a bus into centre centre. And there are many relatively inexpensive (for Iceland) restaurants nearby.
Hotel Island was a great choice for us!