In a former biscuit factory right on the edge of the center of Reykjavik (the center is small: you can see most of it in a fifteen minute walk), and this is a few steps from the main street, even though it may seem like miles on the map far; That's REALLY not the case. Anyway, that's where (here) the Kex Hostel, aka the Koekjes Hostel, was established, in Icelandic style. It easily became the hippest hang-out in Iceland and the place where local youth gather several times a week for mini-concerts by local bands and a Viking, the local beer. Baxter's breakfast buffet provides one of the best breakfasts on the island, even for non-guests, and if you get bored you can go to KEX for a haircut or a workout at the gym. There are rooms for four, six and eight and rooms for two with shared or private bathrooms. KEX Hostel