Very friendly staff, great location downtown, excellent breakfast and a great bar.
I think the location is the best location of any hotel or hostel in Reykjavik. I also like that the atmosphere is very warm and relaxed. It's difficult to suggest any improvements to be honest, because everything is superb.
Arguably the best hostel I've stayed in all my life.
There are no signs in the rooms for "please, do not disturb" etc. I know it's a hostel, but I was staying for a longer period (festival in town) and I wished, to have such a sign. The rooms are really bad isolated for heating (needed 3 days of heating for a comfy temp in the room) and they also are bad isolated for the noise pollution from the neighbor buildings.