Hotel Kea is marketed as a first class hotel, so my review is going to be sound picky. But if you charge first class prices, you need to deliver first class accommodation.
The room was a good size, but poorly laid out. A chair was squeezed in between the cupboard and the bed, that meant you couldn't really open the cupboard doors. The toiletries were nice, but nothing special. The towels were good size, but not especially soft or fluffy. No robes or slippers provided. "Coffee service" means they have a kettle and some wrinkled old packets of instant. There was one English breakfast tea bag, and one "fruit" tea bag. Again, nothing special. The bed linens were ok, but they provide a winter weight duvet in summer time. The beds were not very good -- I think they were frame sprung (rather than pocket sprung), meaning that when you or your partner moves the whole thing wobbles.
The bathroom is poorly laid out. The towel rack is a meter and a half from the shower, so you have to put your towel on the floor or the sink. Only one towel really fits on the towel rack, so you have to swap the towels around to make sure they dry by the next day.
It was overall ok. But the prices being are charged are not for rooms that are "ok." This property is a good example of why, in normal times, I leave Iceland and go abroad for vacation. The cost of a US flight and a US hotel winds up costing less and delivering more than just staying in Iceland.