The Reykjavik Hilton is a modern 9 storey hotel a 5 minute drive / bus from centre of town. Good sized rooms with great views. Everything you'd need/want. Staff couldn't be more helpful. Plenty of free car parking. Having been to a number of hotels in Iceland this is a good one. Doubt whether there are any benefits to being in the city centre as there's really not much there. Only bad point, it is a modern hotel with no soul.