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Guesthouse Baldursbra is is a two star hotel/guesthouse in down town Reykjavik. Located in a quiet down town area, very downtown but quiet. They also have apartments for rent in other locations in Reykjavik.
It is situated 5 minutes from the main shopping street and also just a few minutes away from City Hall.
http://notendur.centrum.is/~heijfis/
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