The best 8 hostels in Iceland

The best 8 hostels in Iceland

How to find the best hostels in Iceland for your trip:

Iceland, the land known for its impressively dramatic landscapes, boasting some of mother nature’s best features including volcanoes, hot springs and lava fields. At some point you’ve probably stumbled across a viral social media video showing off some of the stunning waterfalls Iceland has on offer and waterfall by waterfall you find it harder to challenge your inner voice telling you to quit your (“lame af”) day job and travel to a place more beautiful than a baby dear on ice dancing to ‘Wonderwall.’ While packing your bags and jet-setting off to your real-life daydream does sound extremely exciting, it’s the in-between organising that can sometimes get a bit stressful.  To help, we’ve come up with our best hostels in Iceland to ease the paperwork and get you out and about exploring sooner!

Contents

    1. Best hostels in Iceland for solo travellers
    2. Best hostels in Iceland for couples
    3. Best hostels in Iceland with private rooms
    4. Best hostels in Reykjavik

Best hostels in Iceland for solo travellers

“The good thing about flying solo is it’s never boring” – Steve Fossett

Galaxy Pod Hostel

best hostels in Iceland Galaxy pod hostel

Key features:

  • Free Wifi
  • Luggage storage
  • Adaptors
  • Security lockers
  • Free city maps

Galaxy pods! I’ve caught your attention already haven’t I? Located in downtown Reykjavik, these space pods instead of the usual bunk bed dorms will have you buzzing with Mr Lightyear vibes (see what I did there?!) In terms of location, the hostel is a short 15-minute walk between all the bars, plus a 24/7 convenience store right across the street that might (will) come in handy after a couple of cold ones at the pub that ‘unexpectedly’ turn into a sun-riser. Conveniently, also just a short 15-minute walk away you’ll find yourself at Laugardalur where you can expect a range of activities from a swimming pool, a zoo with Icelandic animals, flower garden and a skating range to name a few. Relax in the movie room, sip some beer at the bar or make some new mates in the social lounge all while exploring some of the planets most alien landscapes.

Address: Laugavegur 172, Reykjavik, Iceland
Neighbourhood: Holt
Nearest Bus Station: Filadelfia

Book your stay at Galaxy Pod Hostel

Bus Hostel Reykjavik

best hostels in Iceland - Bus Hostel Reykjavik

Key features:

  • Free wifi
  • Luggage storage
  • Outdoor Terrace
  • Security lockers
  • Bicycle hire and parking

Located in the heart of Reykjavik you’ll fall in love with the friendly staff, buzzing atmosphere and life-long pals you make. Offering spacious dormitories and private accommodation with speciality dorms for women-only inclusive of an ensuite bathroom, so that, no matter what your preferred travel style is the Bus Hostel Reykjavik is suited to fit a diverse range of backpackers. The friendly staff at the desk are there to make your trip one to remember. From questions about the town to helping book tours they’re there to make your time away from home that little bit more special. Technically talking, the hostel has two fully equipped kitchens, 24/7 front desk, an outdoor terrace and much more.

Address: Skógarhlíð 10, 105 Reykjavik, Iceland
Neighbourhood: Hlidar
Nearest Bus Station: Klambratún and a short 10 min walk to the main bus terminal BSI.

Book your stay at Bus Hostel Reykjavik

Best hostels in Iceland for couples

“As soon as I saw you, I knew you would be an adventure of a life time.” – Winnie the pooh

Hlemmur Square

Best hostels in Iceland Hlemmur Square

Key features:

  • Free Wifi
  • Bicycle parking
  • 24 – hour security
  • Luggage storage
  • Late check-out

Hlemmur Square combines luxury hostel and upscale hotel accommodations under one roof. Named for the central meeting spot that once served as a watering hole for travellers and their horses, Hlemmur Square is quickly becoming an extension of the city’s downtown neighbourhood. Their spacious rooms come with large lockers for every guest. If you’re planning on visiting Iceland during their famous midnight sun, never fear as each dorm has blackout curtains to ensure you have a good night’s sleep.

Address: Laugavegur 105, 105 Reykjavik, Iceland
Neighbourhood: Hlemmur
Nearest Bus Station: Hlemmur

Book your stay at Hlemmur Square

Reykjavik Loft HI Hostel

Best hostels in Iceland Reykjavik Loft HI Hostel

Key features:

  • Free Wifi
  • Security lockers
  • Steam room
  • Tours/ travel desk
  • Late check-out

Voted the best HI-Hostel in the world in 2014 and the best hostel in Iceland at the 2015 Hoscars (you guessed it: the Oscars for hostels). This highly rated hostel is in a prime location. Just a 5-minute walk you’ll find yourself in the best parts of the city. Not to mention, the views over the heart of Reykjavik from the hostel’s rooftop terrace is something that makes this hostel unique, and *wink wink* a potential romantic spot to gaze over the city and even catch a glimpse of the northern lights during the winter with your loved one. For the bookworms out there, you’ll love the book swap shelves nested away in the spacious lounge. The principles of this hostel are what makes this hostel special, both quality and eco-friendly and run by a non-profit organization their aim is to contribute towards an ethically conscious and sustainable style of travelling.

Address: Bankastræti 7, 101 Reykjavik, Iceland
Neighbourhood: Reykjavik Centre
Nearest bus station: Stjornarradid

Book your stay at Reykjavik Loft HI Hostel

Best hostels in Iceland with private rooms

Midgard base camp

best hostels in Iceland Midgard base camp

Key features:

  • Free Wifi
  • Hot tub
  • Outdoor terrace
  • Security lockers
  • Tours/ travel desk

Located in central South Iceland in a small town of around 900 inhabitants, Hvolsvollur is the perfect Icelandic “base camp” for day trips. If meeting the locals and fellow travellers is something you value highly during your travels, then staying in this family-run hostel is the perfect option. The Golden Circle and the Reykjadalur geothermal hike are within a short distance and you can easily spend one day in Reykjavík and then leave the town again for the quietness of the countryside. Midgard Base Camp is very much a place from which to come and go, before and after exploring the spectacular natural environments that are all around you.

Address: Dufþaksbraut 14, 860 Hvolsvöllur, Iceland
Neighbourhood: Hvolsvöllur
Nearest bus station: Hvolsvöllur

Book your stay at Midgard Base Camp

Akureyri backpackers

best hostels in Iceland Akureyri backpackers

Key features:

  • Free Wifi
  • Outdoor terrace
  • 24-hour security
  • Bar, café and restaurant
  • Tours/ travel desk

The latest addition to Akureyri’s hostels, this hostel is located within the towns centre aka it’s surrounded by quirky coffee houses and mouth-watering restaurants. This lively hostel offers the cutest private rooms making any stay special. Boasting a travel hub within the hostel you can pick the local experts’ brains and find amazing tours and adventures around Iceland.

Address: Hafnarstræti 98, 600 Akureyri, Iceland
Neighbourhood: Akureyri
Nearest bus station: Kaupvangsstraeti

Book your stay at Akureyri Backpackers

Best hostels in Reykjavik

KEX Hostel

best hostels in Iceland KEX Hostel

Key features:

  • Free Wifi
  • Outdoor terrace
  • Book exchange
  • Late check-out
  • Airport transfers

KEX aka the Icelandic word for ‘biscuit’.. and with a name like that how can you not love this hostel? Just steps from all the bars, clubs, and music venues in the city and also a painless distance from late-night munchies spots and tourist attractions. If you find yourself wanting a day’s rest in between exploring Iceland’s impressive landscapes, you won’t be lost for things to do at this hostel. Choose from enjoying the company with your new travel pals on the heated outdoor patio, the bar and café or relax and spend some down time in the lounge area. Located right in the heart of Reykjavik, KEX hosts stunning views right across the bay to Mt. Esia and better yet it is right in the centre of the action with nightclubs, shops, restaurants and other points of interest close by.

Address: Skúlagata 28, 101 Reykjavik, Iceland
Neighbourhood: Reykjavik Centre
Nearest Station: Baronsstigur

Book your stay at KEX Hostel

Reykjavik Downtown HI Hostel

best hostels in Iceland Reykjavik Downtown HI Hostel

Key features:

  • Free Wifi
  • Steam room
  • 24-hour security
  • Common room
  • Luggage storage

Nestled just a stone’s throw away from the bustling harbour area and in the centre of downtown Reykjavik, this hostel boasts awesome spacious accommodation. With the 24-hour reception and a team that’s happy to give local advice on the different things to do whilst you’re in town, this hostel is the perfect combination of helpful and friendly. Plus, located right in the heart of town yet on a quiet residential street really is the best of both worlds, right?

Address: Vesturgata 17, 101 Reykjavik, Iceland
Neighbourhood: Reykjavik Centre
Nearest Station: Myrargata

Book your stay at Reykjavik Downtown HI Hostel

Compare Hostels in Iceland

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Simone Jacobs (Hostelworld)

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