Set in a fairly austere five-story concrete building on Hverfisgata, it would be easy to dismiss the 101 Hotel as merely a functional hotel option. Stepping inside, however, guests discover an ultra-modern boutique hotel whose minimal black-and-white décor—created by the hotel’s owner-designer, Ingibjörg S. Pálmadóttir—lends the hotel a contemporary gallery feel. This is accentuated by the modern artworks and sculptures dotted around the hotel, all by local artists, which complement the oak floors and wood-heavy Nordic furniture found throughout the 38 rooms. The queen and king-size beds (there are no twin rooms) come with fine Italian linen, and the rooms' entertainment systems are state of the art. The open-plan bathrooms make extensive use of glass, and Aveda bath products are on offer; the deluxe rooms and suites come with claw-foot tubs. The hotel also has a classy restaurant and bar, a gym and spa, and a comfortable lounge area.