Hotel, central to everything
This hotel is perfect for all places of interest in Reykjavik and is a good location for shopping. However if you do decide to rent a car there is free parking next to Hallgrímskirkja, which is the big church and is a 10 minute walk down the hill. There are always plenty of spaces to park so therefore you will have no problems searching for spaces.
As for the hotel, it is very modern and clean, rooms are a little bit small but is to be expected when staying centrally. Staff is very friendly and helpful. Also breakfast is very good from English breakfast to continental, cererals, selection of fish, yogurts, fresh fruits etc.
If you only want to visit Reykjavík then this is a perfect location.