What Are the Best Hostels in Iceland?

Furnished with salvaged materials, Kex – named for the building’s biscuit factory heritage – is a unique hostel, mere steps from the sea in downtown Reykjavík. Everything from the Hallgrimskirkja to the Sun Voyager sculpture is within walking distance; you’ll also find many cafes, museums, shops and bars along the way. The hostel’s restaurant, lounge area and heated patio are great spaces for socialising after exploring.

The future has arrived in Reykjavík’s most sci-fi hostel, where you’ll be sleeping in a Star Trek-esque space pod, complete with a locker and door shutters or curtains for added privacy. The hostel also has a virtual-reality and gaming room – not that you’ll need to escape from its mountain views. There’s also a grocery store across the street, where locals shop for kitchen staples and specialities.

A warm welcome awaits you at Reykjavík’s Bus Hostel, where modern simplicity exudes from every room – including private twin rooms and four- to 20-bed dorms. It’s a 20-minute walk to the city centre; however, it’s adjacent to the capital’s primary bus terminal, putting it in a prime location for nature, adventure or Northern Lights tours in Reykjavík and the surrounding area. Perks include bed linen and budget-friendly airport transfers.

A former fish factory, the Freezer may be the most ambitious hostel in Iceland, combining award-winning accommodation with a culture centre, a theatre and an artist residency. In western Iceland, the hostel sits near Snæfellsjökull Glacier National Park; it’s the perfect spot for viewing the incredible Northern Lights. At the end of a long day of exploring lava fields and volcano craters, relax with sociable game nights, music, cinema and more at the hostel.

If you’re looking for affordable accommodation, food and drink in Iceland’s “Capital of the North”, look no further than Akureyri Backpackers, a family-run hostel where your comfort and budget are the top priorities. There’s a range of four- to eight-person dorms, along with family bunk rooms and private doubles. Share travel tips in the hostel bar or on-site sauna. Lake Mývatn and the whale-watching town of Húsavík are just an hour’s drive away.

Relax in a bubbling hot tub at Laugarvatn HI Hostel, sitting in one of South Iceland’s most popular summer resort towns. Single, double and family rooms are available here, most with shared bathrooms. The grocery store next door makes it easy to pack for your adventures, whether it’s exploring Litli Björn cave or hiking and fishing expeditions. Laugarvatn Fontana is also nearby – a stunning lakefront spa where you can bathe under the Northern Lights.

The Barn Hostel’s stylish design is a sight to behold, complete with dark wood and expansive views of Reynisfjall, a tuff mountain. Luxury amenities (hairdryer, late-night reception and well-stocked hotel bar) mean you’ll almost forget you’re staying in shared accommodation. The hostel is conveniently close to Iceland’s prominent south coast attractions; the black-sand beach of Reynisfjara is just a four-minute drive away – keep your eyes peeled for the puffins.

Laid-back and cosy, Selfoss HI Hostel provides an excellent base to travel around southern Iceland. Head out to the Golden Circle and explore Thingvellir National Park before returning to the hostel, where you can tuck into provided meals (at an extra cost) or luxuriate in the hostel’s hot tub. Choose between a mixed dorm or a range of private rooms, depending on your group size.

Set in a fully accessible building in the heart of Reykjavík, this HI hostel has rooms to suit all travellers – from six-person dorms (both mixed and female-only) to private rooms sleeping up to six. While it has all of the city’s main sights on its doorstep, it’s also home to a jam-packed event calendar, offering live music, markets, karaoke nights, pub quizzes and more. It also prioritises sustainability, offsetting the carbon footprint of every guest. Visit the rooftop terrace for a beer.