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.