Had a 18 hour layover in Iceland and stayed at Fit for a place to get a few hours sleep and it was a short walk from the airport (maybe 1 hour/3.5miles/7km) The bed was comfortable, the manager was friendly, the shower had hot water and the facitilities were clean. The building is old and a bit worn and the area of town is more industrial, but it's only a short distance to a few restaurants and the shore. It was the least expensive place that I found (Iceland was very expensive overall) and was a good deal for the price. I would stay there again and would recommend it.
The bedding and pillows could be replaced. I don't mind things being old or worn, but they were noticeably stained. Wi-fi signal didn't extend much past the reception desk, but that was not a big deal.
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