When traveling throughout Europe on a budget, you normally have to make a choice between a hostel and a hotel. At Hlemmur Square, you don't have to choose. This stylish spot offers modern hostel accommodations in a variety of configurations, as well as 17 upscale hotel rooms, giving you the best of both worlds. Most of the rooms offer private balconies with killer views of the city, while inside, you'll find a restaurant and bar, a playroom for both children and adults, and live music in the lobby. And should you want some fresh air, the Icelandic horses out front are ready to take you on an old-fashioned carriage ride.