Top 10 Best Hostels in Reykjavik, Iceland

Iceland is an expensive place to visit, but not if you stay in one of these 10 hostels.
Last Updated
October 29, 2022
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Iceland is one of the most beautiful places on Earth, but it's also expensive to visit. If you're looking for a great place to stay that won't break the bank, these are the 10 best hostels in Iceland.

This article will guide you through the best hostel destinations in Reykjavik. You'll find out what makes each location special with helpful tips about things like transportation or activities nearby or how close they are to grocery stores or restaurants.

We've also included reviews from previous guests who have visited each hostel so you can get an idea of what to expect before booking your own trip!

The best part? You can book any of these hostels on HotelsCombined and other popular booking websites for discount prices starting at only $40 per night.


Why stay in a hostel in Reykjavik?

Iceland is known best for its natural sites and attractions, such as waterfalls, glaciers, volcanoes, and hot springs. For the best views of these natural wonders, rent a car or go on a tour to best explore the locations. Staying at a hostel along your journey will give you access to cheap options for transportation, as well as fellow travelers who can give you recommendations about what to see or do best!

The Best Hostels in Reykjavik

1. Loft HI Hostel

Address: Bankastræti 7, 101 Reykjavík, Iceland

The Loft Hostel is located in Reykjavik's main shopping area. It is a short walk to Harpa Concert Hall, City Pond, and Hallgrimskirkja. The hostel is located on a rooftop terrace, which has a beautiful view of the city. This is also an excellent place for sunbathing in the summertime, as it is near restaurants, a cat cafe, and the flea market.

The Loft is located on the top floor of a building with a rooftop terrace and communal areas. The Loft Hostel offers a range of accommodation options, ranging from hostel beds to pod-style accommodations. It has free Wi-Fi and a TV in the lobby. The hostel also offers tour and ticket assistance and is certified as a fully accessible building. A guest can book a room at the Loft for a price of 4100 ISK, which is roughly $41 USD.

The Loft Hostel has a variety of accommodations, from private rooms to dorms. There is even a rooftop terrace, so you can enjoy the views of the city while sipping on a cold beer. The Loft offers free Wi-Fi, modern common areas, and tours. It is also one minute from the city center and is a great base from which to explore the capital of Iceland.

The Loft Hostel is located in the heart of Reykjavik, just steps from Laugavegur and Harpa. The Loft has 18 guestrooms, each with a private bathroom. Guests can also opt for a dormitory room with shared bathrooms. There are also an arcade/game room, a TV in the lobby, and tour/ticket assistance.

The Loft Hostel offers free Wi-Fi, and free breakfast is available in its restaurant. The Loft also has a lounge and bar, where you can enjoy coffee and tea. The hostel has a free parking lot, which makes it a convenient location for both sightseeing and business activities in Reykjavik. The staff is friendly and helpful, and the hotel is pet-friendly.


2. Reykjavik Downtown HI Hostel

Address: Vesturgata 17, Vesturbær, 101 Reykjavík, Iceland

If you want to stay in the city center but don't want to spend too much money, try the Reykjavik Downtown HI Hostel. This hostel offers a funky Japanese vibe and is only 10 minutes from the city center. It offers free parking, and you can park your car right outside the front door. The HI Reykjavik Downtown HI Hostel has 19 rooms with private or double space pods. All rooms have lockers. The location is very convenient for exploring Reykjavik and its surrounding area.

The hostel is located in the heart of Reykjavik, near the old harbor, which is just five minutes away. It has an extensive list of restaurants and coffee shops, as well as free Wi-Fi throughout. All major sights are within walking distance. The hostel also has bike storage and bicycle rentals, so you can enjoy Iceland's beautiful natural beauty in the city. The staff at Reykjavik Downtown will be more than happy to help you with your travel plans.

The Reykjavik Downtown HI Hostel offers private or shared rooms. All rooms are equipped with beds and duvets. Bathrooms have showers with hot water. You can choose from dorms with eight to ten beds, as well as single, double, or family rooms. The staff is very helpful, and the hostel is located in a great location. The downtown location makes it a great choice for families or individual travelers.

3. Kex Hostel

Address: Skúlagata 28, 101 Reykjavík, Iceland

One of the great things about Kex Hostel Reykjavik is its waterfront location, which gives you spectacular views of the fjord. The hostel is also conveniently located close to the international and domestic airports. The BSI terminal is a quick walk away and can be used to book bus and tour reservations. It is also possible to book tours and activities in advance through the reception.

Located near the main shopping district, Kex Hostel Reykjavik is a great choice for travelers who want to be centrally located in the city. It is a 4-minute walk from Laugavegur, a popular street that has many different shops and restaurants. Guests will appreciate the communal kitchen, complimentary Wi-Fi access, and the onsite restaurant and bar. The 24-hour front desk will gladly assist you with travel arrangements and provide luggage storage for your convenience.

The hostel is also located in a former biscuit factory, and the interior is furnished with salvaged materials and found objects. The décor is unique and features a lounge and heated outdoor patio. Other amenities at the Kex Hostel include a 24-hour reception and a tourist information desk. Besides, the location is ideal for exploring the city.

4. Nordic Apartments

Address: Laugavegur 87, 101 Reykjavík, Iceland

Nordic Apartments in Reykjavik, Iceland is a beautiful apartment complex in the city center. They have a great location and offer world-class service. They offer 41 suites with modern amenities and facilities, including free Wi-Fi and parking.

The apartments are located right in the heart of Reykjavik and close to all major attractions. They have a lovely, modern design with plenty of style and comfort to offer their guests. Guests can also enjoy a relaxing view from their balcony or from one of the many communal areas inside the complex.

There are several restaurants nearby for guests looking for good food. It is also near some excellent shopping centers for those who want to buy souvenirs or clothes while they are there.


5. Reykjavik Hostel Village

Address: Flókagata 1, Reykjavík, Iceland

Located in Reykjavik's Old Town, the Reykjavik Hostel Village is a family-run hostel with rooms that offer free Wi-Fi. The property has free breakfast and has access to free self-parking. Guests have access to a computer station. The Reykjavik Harbor is just 1.5 mi away. It is a convenient location for travelers to explore the city.

Reykjavik Hostel Village is located a short walk from the main shopping street, Laugavegur. The hostel has bright, air-conditioned rooms and apartments, which feature private bathrooms. Some units have refrigerators and free Wi-Fi. The hostel provides guests with a daily newspaper and provides 24-hour reception. The Reykjavik Hostel is a good choice for families looking to enjoy the city's many attractions.

Guests will find the location of Reykjavik Hostel convenient. The property is within a 10-minute walk of Hallgrimskirkja, a popular church. Guests are also within a 1-mile drive of the city's airports. For those traveling by car, the Reykjavik Domestic Airport is approximately 1 mi from the property. The drive time will depend on traffic and other factors.

6. Guesthouse Andrea

Address: Key Pick-Up:, Njardargata 43, Freyjugata 24, 101 Reykjavík, Iceland

Guesthouse Andrea is also a family-run property with a friendly, relaxed atmosphere. It is centrally located, a 10-minute walk from the city center. Each room has a dining area and a desk and comes with bed linen and ironing facilities. The accommodation also offers bicycle rental, a tour desk, and free Wi-Fi. Guests can enjoy a full breakfast each morning at the Guesthouse Aurora.

Guests at Guesthouse Andrea can make use of its free parking and high-speed Internet. The rooms are all equipped with flat-screen TVs and private bathrooms. The hotel also offers a continental breakfast and offers car and bicycle rental services. It is located in a quiet residential neighborhood, making it an ideal place for a romantic getaway. There are also many activities for couples and families near Guesthouse Andrea.

It is located near the Hallgrimskirkja Church. There are plenty of other attractions in the city, including the Volcano House. You can explore the city center on foot or ride the shuttle to reach Keflavik International Airport. The city's museums are also nearby. Several of the museums and cultural attractions are easily accessible from Guesthouse Andrea.

7. Guesthouse Sunna

Address: Þórsgata 26, 101 Reykjavík, Iceland

If you are planning a family vacation to Iceland, Guesthouse Sunna is an ideal choice. It features 51 comfortable guest rooms and a communal kitchen. Each apartment includes free Wi-Fi, a TV, and a tea and coffee maker. You can use the kitchen to prepare your own breakfast or use the microwave to prepare your own dinner. There is also a communal laundry room available, and you can make use of an iron and ironing board at no additional charge. You can also book tour/ticket assistance at the reception desk.

Situated in the heart of the old city, Guesthouse Sunna is located close to the Reykjavik Cathedral and the National Einar Jonsson Gallery. The hotel is also within walking distance of other main attractions. All rooms have free Wi-Fi access, a television, and tea and coffee-making facilities. In addition, each room has its own private bathroom and is equipped with a kitchenette. The guesthouse also offers free parking and 24-hour front desk services.

There are plenty of places to visit in Iceland. The National Einar Jonsson Gallery is just across the street. You can also visit the National Theatre of Iceland, which is about 7 km from the guesthouse. All of these attractions are within walking distance of the Guesthouse Sunna. A lot of Icelandic visitors come to the island's capital to experience its beauty. In addition to the numerous attractions and restaurants, the city is home to the world's largest penile display.


8. Hlemmur Square

Address: Laugavegur 105, 105 Reykjavík, Iceland

Hlemmur Square Guesthouse and Hostel is one of the best backpacker hostels in Reykjavik for those looking for a great location at an affordable price. It's located right next to the best restaurants and bars in town, but it also has free luggage storage on site.

If you're looking for a stylish place to stay in Reykjavik, look no further than Hlemmur Square. This hip, upscale hostel is located near the refurbished Hlemmur bus depot, which has been converted into a street food hall. In addition to modern rooms, you'll find a restaurant and a bar with live music. The staff is very welcoming and eager to help you.

The Hlemmur Square hostel has modern art deco accommodations, 24-hour room service, free Wi-Fi, and a coffee bar. You can rent a luxury hotel room with a balcony and watch movies. The café offers delicious meals on its terrace. You can also go on an adventure with the children in the playroom. The hotel also offers an in-house movie theater.

The Hlemmur Square hostel features 17 rooms, including private rooms and studio flats. The private rooms are less luxurious than those at a resort, but they're still worth it for the location, privacy, and amenities. Guests can also rent a fully furnished flat offsite. The hostel's staff speaks English, and the location is close to the city center. The prices at the Hlemmur Square hostel are reasonable for the area. Most rooms start from $71 per night.

9. Snorri's Guesthouse

Address: Snorrabraut 61, Reykjavik, 105, Iceland

Snorri's Guesthouse is a small and homey hostel in Reykjavik with a great location - just a few minutes walk from the city center. This hostel is perfect for backpackers who want to be close to all the action, but it's also quiet enough that you can relax after a long day of sightseeing. The best part? This hostel has some great amenities, like free Wi-Fi and luggage storage.

Snorri's Guesthouse is centrally located, just off the main street Hverfisgata. As soon as you walk outside, you'll see tons of restaurants and shops across the street, and the city center is just a few minutes walk away. There's also a grocery store nearby in case you need to buy any snacks or drinks, and the staff is happy to help with recommendations about what to do in Reykjavik.

This hostel features a common area with a kitchen, dining table, and TV as well as a garden and terrace. There's also free Wi-Fi, luggage storage, and a guest computer. Snorri's Guesthouse is great for backpackers who want to be close to everything - the staff is happy to help with recommendations about what to see and do in Reykjavik.

10. Reykjavik City HI Hostel

Address: Sundlaugavegur 34, 105 Reykjavík, Iceland

The Reykjavik City Hostel or most popularly known as Dalur - HI Hostel has several types of rooms, all with simple but clean decor. Most rooms feature wooden desks, colorful plastic chairs, and electrical outlets. Some rooms have private bathrooms, while others have shared baths. The rooms are large enough for two people.

If you're traveling with children, there are also cribs and extra beds available for free. Generally, you'll find a few amenities, such as a kitchen and television.

The Reykjavik City Hostel is a popular budget property with 43 rooms. The property is located near a thermal pool, and you can explore the local nature by kayak or bike. There are communal kitchens, free breakfast buffets, and even a game room.

This hostel is currently working on adding a restaurant, so you can order your favorite Icelandic dish. The food is excellent at this hostel and is served in a casual, relaxed atmosphere.



In conclusion, if you're looking for a great place to stay that won't break the bank, these are the 10 best hostels in Iceland. This will relieve some of the burdens from your wallet and allow you to explore the beauty of the country.

You can't go wrong with any of these hostels in Reykjavik, Iceland. They're all close to the city center and have great amenities for budget travelers who are looking for a place that's not too expensive but also has some nice perks like free Wi-Fi or luggage storage. Our advice? Book now!

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