The overall stay was not bad (though having self check in would have saved everyone a lot of trouble). Also, locking the doors at night (with guests inside) is a bit unnerving. I asked what do I do if I need to go out and come back in at night, and they said - ok, we will leave the door unlocked for you. (How hard is it to get a code lock for the front door?)
But what shocked me the most is that they charge 500 ISK (~3,5 EUR) for a cup of tea or coffee at *free* breakfast. And it would still be ok if they put a note - please ask for a drink behind the counter as it is not included. But no, they have lipton teabags next to food, but when I tried to pour some water in a cup, a very grumpy girl working in a breakfast room told me - you cannot just take the tea, you need to pay for it.