A sizeable hotel in Borgartun, Fosshotel Reykjavik fits the bill for a 4* Hotel complete with airport services, restaurant and concierge. 5 minutes from the water and 15 minutes from downtown, by foot, bus-stop 12 picks up right out front for easy access to tours or KEF. Appreciate the complimentary Coffee, but gym definitely needs more than 1 treadmill for so many rooms....