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We’ve scouted this beautiful land to find hidden gems, hostels worth remembering. In fact, we even have a 5 star hostel in Reykjavik: KEX Hostel.
Sure, it’s a small guide compared to many destinations. That’s probably because there is only a population of around 339,000, one-third of which lives in Reykjavik! Yet solo travellers, budget travellers and couples will not be disappointed.
To help you out further, we’ve included a big hostel map to pinpoint your chosen hostel(s).
Note: all of the destination, except for Reykjavik, only include one hostel recommendation. That’s because we couldn’t find any more worth mentioning that we would recommend to our readers, friends and family.
Our guide to the top Iceland hostels obviously starts with the capital. No doubt you’ll begin your Icelandic adventure in Reykjavik. And honestly; it’s a wonderful city with many quirky attractions and hip vibes.
From here it’s easily accessible to the famous Blue Lagoon and the start point for the popular Iceland Golden Circle tourist route. This is also the ONLY destination in Iceland where we have more super hostel recommendations:
KEX is the Icelandic word for biscuit, and it just so happens to be our #1 super social hostel and only 5 star hostel in Iceland. It has room for 215 people, so you can expect all rooms types on offer – dorms (female only, too), single, twin, double & family rooms.
The vintage industrial design includes a lovely bar and restaurant, large kitchen and outdoor patio (heated).
It’s a great place for meeting travellers and locals alike.
Want to chill out in Iceland? Visit Loft Hi Hostel, this place share the nordic vibes at its best, a very cosy common areas with board games and a bar where you can meet other travellers and share your travelling stories.
Best Hostels in Hellissandur: The Freezer Hostel & Culture Center
Hellissandur is certainly the closest destination to stay when looking to explore Snæfellsjökull National Park. We highly recommend visiting the Kirkjufell Mountain, especially if you’re exploring by car.
Besides the listed accommodation, we also put together the best hostels in the world; the 5 Star Hostels.
We stayed in a former winery in Santorini, in a former jail-now 5 Star Hostel and many more. And we share all of these unique budget accommodations with you.
Make sure you check out our guides “best hostels in“. Here we cover many more destinations.
Update: We now cover as well curated ‘3 best hostels’ guides to cities with no 5 Star Hostels such as Paris, Tokyo and Sydney.
Over to you
Do you have any questions left, maybe doubts? Then please leave it in the comment below. We are very keen to help you - and actually you would even do us a favor!
Your question will help us to improve this Iceland guide.
Last note: Our commitment
This is a genuine article to help you travel a bit smarter, and find the best place on a budget! We will never recommend you any place we haven’t evaluated or are not convinced by. We are constantly updating all our guides to keep them as fresh and accurate as possible.
Safe travels, The Hostelgeeks
Have fun & Safe travels! – – –
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Closed Hostels: 101 Hostel Reykjavik
Welcome to 101 Hostel Reykjavik a simple and bright hostel in the capital of Iceland.
Located on the main street: Laugavegur, visitors can choose from dorms, single and private rooms. This hostel perfect for travellers looking to explore the area. The iconic Hallgrimskirkja Church is 5 minutes walk and the public Sundhöllin Swimming Pool. Perfect choice if you are looking for cheap hostels in Reykjavik.
Good to know: Breakfast is not included!
CLOSED: Galaxy Pod Hostel
Update: This hostel has permanently closed. We’ve kept this content here for your information.
Galaxy Pod Hostel is exactly what you think – out of this world accommodation that seriously suits the alien landscape of Iceland.
Stay in your very own pod. Enjoy all necessities imaginable, plus the added luxury of a personal TV and headphones!
If you’re feeling sociable, head down to the lounge, moviedom and in-house bar.
Fun nightlife and great bars are just a 15-minute walk away.
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