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.
Best Hostels in Reykjavik
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:
Want to chill out in Iceland? Visit Reykjavik Loft Hi Hostel rel='nofollow', 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 Grindavik: Harbour View Cottages Grindavik
Most people head to Grindavik to visit the world-famous Blue Lagoon Spa.
And if you do please stay at the beautiful Harbour View Cottages rel='nofollow' in Grindavik, from there you can enjoy fabulous mountain views, stunning sunsets and sunrises and if you are lucky the northern lights.
Located at 8 minutes from the Blue Lagoon, this place offers free parking and free WiFi.
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.
By now you should have the answer to your question where to stay in Iceland. Which of the best hostels in Iceland have you fallen in love with? Let us know!
This guide is your shortcut to your hostel-picks, saving you lots of time in your accommodation research.
And for sure, it gives you the security of a top-hostel choice without any bad surprises.
Then please please leave a comment below. We would be thrilled to hear from you and to help a fellow backpacker.
Have fun & Safe travels! – – –
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Discounts for Hostels in Iceland
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Your Smart Packing List
It is time to see what you should pack in your backpack or suitcase. Make sure you always pick a quality hostel, it totally reduces the things you need to pack. Here is our ultimate hostel packing list. It features 23 items you should always carry in your backpack.