Hotel EDDA is a highly recommended chain of hotels. They are simple with really clean rooms, and some of them offer very spacious ones; the food is fantastic (I had dinner in some of them) and the staff is very nice.
In reality, they are residents for students used as hotels from May/June to August/September (it depends, so, check the dates). But don't be afraid, some are good, some others, are really fantastic! For example, this one.
Unique Qualities: Very spacious room.
Price I really paid: Twin room: 13.600 ISK; breakfast: 900 ISK per person (August '08); free wi-fi free parking in the complex.
1 ISK = 0,008251 € = 0,01213 $ (August ’08).
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Theme: Hotel
Phone: (+354) 444 49 00
Website: http://en.hoteledda.is/EddaHotels/Akureyri
Other Contact: E mail: edda@hoteledda.is