

Reykjavík is often dubbed "the nightlife capital of the north". It is famous for its nightlife during the weekends. Icelanders tend to go out late so bars that look rather quiet can fill up suddenly—usually after midnight on a weekend.
One of the main causes for this is that alcohol is relatively expensive at bars. People tend to drink at home before going out. Beer was banned in Iceland until 1 March 1989, but has since become popular among many Icelanders as their alcoholic drink of choice. Beer, however, is expensive: half a litre of beer in an Icelandic bar can cost between 600 and 850 krónur (approx. US$5–7, €3–5, or £3–4 as of August 2009). Consequently, revellers will often leave home late and are already inebriated when they arrive at the bars in the city centre.
There are over 100 different bars and clubs in Reykjavík. Most of them are located on Laugavegur and its side streets. It is very common for an establishment that is a café before dinner to turn into a bar in the evening. Closing time is usually around 6am at weekends and 1am during the week.
www.lonelyplanet.com/iceland/reykjavik
www.ivebeenthere.co.uk/places/iceland/reykjavik/index.jsp
This comfortable Reykjavík budget hotel offers guests a complimentary breakfast and free Wi-Fi internet access. Capital-Inn has spacious and newly renovated budget rooms.
The hotel is just a short walk from the Kringlan Shopping Centre, Perlan and the beach, which has geothermal heated seawater. Guests at Capital-Inn also benefit from complimentary private parking.
Sudurhlid 35d
105 Reykjavik
tel: +354-5882100
info@capitalinn.is
www.capitalinn.is
It is a hotel a two hour drive from Reykjavik. I went in 2007 with a school trip and stayed for a few nights to experience the Northern Lights. It is set within the amazing landscape of Iceland and offers a 360 degree view to capture the incredible displays. It is singly placed meaning there is not a disruption from other hotels or settlements.
Hotel Ranga
Address: 851 Hella, Iceland
Telephone: (354) - 487-5700
www.hotelranga.is/
Google map: tinyurl.com/yd3p475
It's a small thermal beach with (imported) white sand, sea swimming, thermal waters and hot pools. It's free to visit and has a really nice atmosphere.
Catch bus no 19 from town, or walk down the road between the Perlan and the airport.
More info: www.freecitytravel.com/event_detail.aspx?ID=81
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