First I have to say I booked this as part of a package (with flight) and cannot refer to price.
On the plus side, the hotel/room is in the centre of town and within 10 minutes of many of the attractions and is in the main shopping street of Reykjavik. There is a coffee m/c with free coffee and tea 24/7; useful if you have to leave for the airport really early.
On the down side, my room WAS advertised as small room and it was small. If I had not been on my own it would have been ridiculously small. Little storage space, no desk and chair, no shelf space for anything in bathroom, and no apartment facilities of any kind.
If you do choose this hotel/apartment do make sure you book a large room.