Face it, Reykjavik is expensive. 101 Guesthouse Hotel is clean, convenient and has a communal kitchen and an affordable price, compared to other similar properties.
The pros: the kitchen, clean rooms, hot showers, more space than a "pod", a free/shared food area to use and donate to as you leave. A decent size fridge in the common area where people seemed to eat only their own food. There are lots of plates, glasses, knives and some forks and a dishwasher. You can easily connect to busses. There is a 1011 convenience store right around the corner, a Bonus and a 24 hour Spar grocery nearby.
The cons: no reception area, so if you missed the code they send 2 hours before your arrival time, it's confusing as you connect to someone off-site to get your room code. The pans available for use are scratched and worn. There was a spoon shortage, which seemed to encourage spoon hoarding. Only 2 burners for a stove and both were slow to heat.
Overall, I still give it 5 stars because of the alternatives in terms of price and amenities.