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If you’re staying in a city-centre hotel, something to consider is weekend noise – drunken partygoers falling out of bars and clubs can be irritating if you’re desperate for sleep before that 7am excursion. Wear ear plugs, choose a room that doesn’t overlook bar-lined streets or public squares, or decide that ‘if you can’t beat them, join them’ and head for the nearest pub!

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Reykjavík Backpackers (Map; 578 3700; www.reykjavikbackpackers.com; Laugavegur 28; sb 4- to 8-person dm Ikr3490, sb d Ikr10,990) Wait years for more backpacker accommodation in the city centre, and suddenly two budget places appear at once! This hostel, opened in June 2009, is a very nuts-and-bolts affair based in a former office block. Rigidly rectangular rooms are whitewash plain – double bunks to sleep in and lockers for your stuff are the only furniture – and only rooms on the 4th floor have access to a kitchen. But you can’t argue with its A1 location, or the friendly staff.

Garður Inn (Map; 562 4000, 551 5900; www.inns-of-iceland.com; Hringbraut; sb dm Ikr4000, s/d Ikr11,000/13,000; Jun-Aug; ) In summer, once the students have left, the university campus offers visitors utilitarian rooms with shared bathrooms. The cheapest sleeping-bag accommodation is in 16-person dorms. Single/double rates include breakfast.

Reykjavík Downtown Hostel (Map; 553 8120; www.hostel.is; Vesturgata 17; sb 10-bed dm Ikr4400, sb 4-bed dm Ikr5200, sb d Ikr13,900; ) A brand-new HI hostel opened in March 2009. Located on a quiet street, it has the same fine amenities as the City branch – but fall out of the door and you’re in the heart of town. Thirty of its 70 beds are in 8- to 10-bed dormitories, while the rest are in doubles or family rooms. Higher prices repel backpackers and attract more couples and families than the original hostel.

Midrange

GUEST HOUSES

Reykjavík is packed with gistiheimili (guest houses) and there are new places opening every year. Most are in converted houses, so rooms often have shared bathrooms, kitchens and TV lounges. Some offer sleeping-bag accommodation.

Guesthouse Andrea (Map; 899 1773; www.aurorahouse.is; Njarðargata 43; sb dm Ikr4000, s/d Ikr9000/12,000; mid-May–mid-Sep; ) Friendly Siggi runs this hidden place, tucked down a sidestreet in a tranquil residential area. Its five private rooms have smart wooden floors and are ideal for self-caterers: each has a sink, cooker, fridge and tiny two-seater table.

Snorri Guesthouse (Map; 552 0598; www.guesthousereykjavik.com; Snorrabraut 61; sb d Ikr8000, s/d/tr from Ikr8500/10,700/16,300; ) On the corner of a big road intersection, this pebble-dashed building doesn’t look too promising. However, its clean rooms in muted shades – particularly the more expensive ‘family’ variety, which have kettles, fridges and private bathrooms – make for a decent base. It’s about a 20-minute walk into the city centre.

Guesthouse Butterfly (Map; 894 1864; www.kvasir.is/butterfly; Ránargata 8a; s/d/apt €89/99/150; mid-May–Aug; ) On a quiet residential street within fluttering distance of the centre, Butterfly has neat, simply furnished rooms. There’s a guest kitchen and wi-fi access, and the friendly Icelandic-Norwegian owners make you feel right at home. The top floor has two self-contained apartments with kitchen and balcony.

Álfhóll Guesthouse (Map; 898 1838; www.islandia.is/alf; Ránargata 8; s/d/tr Ikr9000/12,500/16,000, 2- to 4-person apt 18,000-23,000; Jun-Aug) Almost identical in feel and facilities to Butterfly is this neighbouring guest house, run by a family of elf enthusiasts. Breakfast is a help-yourself affair in the home-away-from-home kitchen.

Guesthouse Aurora (Map; Freyjugata 24; sb dm Ikr4000, s/d Ikr9000/12,000, apt from Ikr15,500; mid-May–mid-Sep; ) Just around the corner from the Andrea, this homely purple town house is also run by Siggi. Its 14 rooms are simple and clean, although there can be bathroom queues! The newly renovated apartments are the pick of the