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Just steps from the harbour in Keflavik is Guesthouse 1×6, one of the most pleasant surprises on a generally excellent trip to Iceland.  Some local carpenters with a vision have transformed an otherwise nondescript house into six unique, outdoorsy rooms.

If you are exploring the peninsula, or have an an early flight from the airport (10 mins away), the Guesthouse makes a great place to stay for a couple of nights.  Rates are very reasonable, and several restaurants are in walking distance, but best of all is the private backyard thermal pool. Who needs the Blue Lagoon?

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Yes, it’s an airline-branded hotel, but don’t hold that against the Icelandair Marina.  It’s a fun, clever hotel in a great location.

Located in a repurposed paint factory, the main door opens directly onto the Reykjavik repair docks, with the harbour and mountains beyond. The ‘nautical’ theme of the rooms has nothing to do with twee New England hotel decor – it’s fresh, funny and very comfortable.  The lobby bar appears to be the place to be on a Friday night, and the cocktails are good, if an investment.   At other times the lobby is nice spot to have a drink and read a book while waiting for your Northern Lights tour to begin.  Breakfasts are excellent.  Central Reykjavik is just a few minutes’ walk away, and the desk staff are very helpful with recommendations.

As a last tip, if you arrive on Icelandair, log in to your flight booking on their website, then check the Marina’s availability via their hotel listings – you may be able to score a good discount.