"It’s not much to look at from the outside—a mud-brown high-rise overlooking Arnarhóll Square—but the interiors are stunning, a slick blend of traditional Scandinavian minimalism and offbeat Icelandic art. The ground floor—with its stylish reading lounge, swank bar, and Euro-Asian "cafeteria"—could easily double as a modern art gallery. The 38 surprisingly cozy guest rooms balance heated oak floors and sheepskin rugs with stainless steel and matte-black furniture, high-speed Internet, DVD players, and disposable cameras (befitting the island’s obsession with technology). Tucked in the basement are Japanese-style baths and a steam room heated by the geothermal pools that lie beneath Reykjavík. The hotel is within walking distance of the historic town center, the main shopping streets, and the mega-trendy 101 nightlife district—the hotel’s namesake."