Reykjavik Icelandair Hotel. Set in a landmark historical building on the harbor, this colorful and upbeat hotel offers a splashy and fun interior, a broad variety of rooms, and a decent array of amenities. Service is friendly and the overall aura is welcoming and lively. Located in Reykjavik’s increasingly upscale harbour district, the hotel enjoys good sea and mountain views, with cultural sights like Harpa Concert Hall a 10-minute walk, and the shops, restaurants and galleries — including the Reykjavik Museum of Photography — also within a few minutes’ strolling distance. Lots of boat tours, including whale and puffin watching, leave from the nearby marina too.