The Best Hostels to Book in Reykjavík

With affordable stays in the centre as well as the suburbs, Reykjavik can be seen on a budget
With affordable stays in the centre as well as the suburbs, Reykjavik can be seen on a budget | © William Perry / agefotostock / Alamy
Melanie Moore

Reykjavík is a travel-friendly city that boasts lively bars, nightclubs and an impressive gastronomic scene. From here, you can make day trips to the Blue Lagoon and book onto a Golden Circle tour. Staying in a hostel is a great choice if you’re looking for an affordable weekend away in the Icelandic capital.

1. Loft Hostel


Rooftop seating area at the Loft Hostel, Reykjavik
Courtesy of Loft Hostel / Expedia

Loft is a great choice if you’re a traveller looking to stay in central Reykjavik. Rooms look out over Bankastræti shopping street and are only eight minutes from the iconic Hallgrímskirkja. The hostel is famous for its bar and rooftop terrace and is popular with people of all ages. Offering more than a simple stay, Loft organises activities like painting, yoga and live-music sessions. Whilst breakfast is included, cash-strapped backpackers also have the option of preparing their own meals in the hostel’s kitchen.

2. Kex Hostel


Bright twin room at Kex Hostel Reykjavik
Courtesy of Kex Hostel / Expedia

Based in an old biscuit factory, Kex has become a prime location for meeting fellow travellers and sampling local beer during the on-site bar’s happy hour. It’s renowned for its regular music events and mix of late-night activities, which includes comedy, pub quizzes, karaoke and even a few open-mic nights. Rooms range from dorms and private doubles to family rooms sleeping six, ideal for big groups as well as solo travellers. When you’re in need of food, head down to Sæmundur í Sparifötunum, the hostel’s gastropub, serving everything from fresh fish to vegetarian dishes.

3. Galaxy Pod Hostel


Four futuristic sleeping pods at Galaxy Pod Hostel
Courtesy of Galaxy Pod Hostel / Expedia

Situated at the end of the city’s main street, Laugavegur, Galaxy Pod brings the Japanese capsule hotel experience to Reykjavík. Equipped with adjustable lighting, USB chargers, a safety deposit box and your own flat-screen TV, the futuristic rooms have everything you need within a spaceship ambience. The hostel has a gaming area, but if gaming is not your cup of tea, they also host movie nights and have a bar with a happy hour.

4. Bus Hostel


Spacious foyer and reception of Bus Hostel, Reykjavik
Courtesy of Bus Hostel / Expedia

Bus Hostel is one of the few accommodation options close to the Wonders of Iceland museum and Klambratún park. Vibrant and lively, the hostel is also situated close to Reykjavík bus terminal, making it an ideal pick for visitors in need of easy access to Keflavík International. Four- to 20-bed dorms are available, including a female-only option, plus the famous Icelandic beer Gull is available on tap from the onsite bar.

5. Reykjavik City HI Hostel


Two bunk beds at Reykjavik City HI Hostel
Courtesy of Reykjavik City HI Hostel, Reykjavik /

This eco-hostel is located outside the city centre in Laugardalur valley, near Iceland’s biggest thermal pool and spa. The modern hostel has a sleek look with a Nordic-inspired interior and a coffee bar, lounge area, patio and garden. A healthy breakfast buffet is available with organic options and fair-trade coffee, plus a barbecue is available for guests to use year-round.

6. Laekur Hostel


Two bunk beds at Laekur Hostel, Reykjavik
Courtesy of Laekur Hostel, Reykjavik /

This well-equipped hostel is based in Laugardalur district, a quiet residential area, which translates as hot spring valley. Rooms are bright and designed to give you a good night’s sleep, which is also why the sizeable lockers are found outside the dorms, rather than inside. Laekur is outside central Reykjavík, but only a short bus ride away, making it a perfect place if you’re looking to stay in a quiet neighbourhood without sacrificing easy access to the city.

7. B14 Hostel


Two bunk beds at B14 Hostel, Reykjavik
Courtesy of B14 Hostel, Reykjavik /

Beautifully decorated in clean, modern wood tones, B14 feels more like a home than a hostel. The common area is a relaxing haven featuring cushy leather sofas, rugged log stools and a minimalist fireplace. Set on the outskirts of Reykjavík, the hostel is nevertheless close to many restaurants and bars. The hostel offers entertainment in the lounge area, stop by for a night of board games or karaoke.

8. Student Hostel


Modern sitting area at Student Hostel, Reykjavik
Courtesy of Student Hostel / Expedia

Bunk up alongside students at the University of Iceland. While the hostel is only open during the summer months, it does offer 43 twin rooms at an affordable price. No dorms here, but you will share a bathroom and communal kitchen with your fellow travellers. It’s just an eight-minute walk to the city centre. Note: there is no wifi in the bedrooms, just communal areas.

Looking for more? Book into one of the best cheap hotels in Reykjavik.

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