Grettir Guesthouse Reviews
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This place was super cute and in a great location. There is a grocery store close by, tourist info, and plenty of bars/restaurants. Backpackers hostel is in front of it and you just have to walk through the little alley between backpackers and a clothing store. The only downside is that there isn't a front desk, which could be a problem if you don't have access to your email or phone while in Iceland. You can just ask another place to call for you if you run into a problem and need help.