Top 10 Hostels In Iceland

Top 10 Hostels In Iceland

Liam Davies
(Updated: )
8 min read

Staying in hostels is the perfect way to meet new people whilst travelling, be that alone or with a friend(s). Staying in dorms can be pretty daunting at first, but once you get past the initial fears and make friends with your roommates then you'll realise there's nothing to be worried about! 

Hostels are notoriously cheaper than hotels due to their less-advanced facilities and lack-of private rooms. However, more and more hostels are improving their facilities and offering family rooms, single rooms and even double-deluxe rooms, all equipped with private bathrooms. 

A lot of hostels will now have self-catering kitchens, laundry facilities, shower areas, even sometimes hot tubs and saunas. They are definitely a fantastic option in more ways than one. 

Below I will list my personal favourite hostels in Iceland, based on research, discussions, reviews, facilities on offer, customer satisfaction and, of course, location. There will be options for Keflavík, Reykjavík, Snæfellsnes, the west fjords, the north, east and south. Bringing you a whole host of suitable options.


Start Hostel


So we start with Start Hostel which is located in Lindarbraut, Reykjanesbær (Keflavík) and is around a 10-minute drive from the airport.


They offer 5 different types of rooms:

  • Double/Twin Room - Private Bathroom
  • Double/Twin Room - Shared Bathroom
  • Quadruple Room - Private Bathroom
  • Family Room (5 beds) - Private Bathroom
  • Single bed within 6-Bed Dormitory (male or female) - Private bathroom and private locker per guest


All room types come equipped with bed linen, towels and a reading light over every bed. There is a communal kitchen, free parking, free Wifi, 24-hour front-desk service (where staff can book tours for you), laundry services and also a breakfast buffet which starts at 04:30 am every morning. 


KEX Hostel


This hostel is based in an old biscuit factory. In fact, the word 'Kex' translates to a biscuit!

Kex is a unique hostel as it is furnished with salvaged materials and found objects from various different locations. Kex describes its self as "an organic concept blending a vintage industrial feel with an eclectic, contemporary touch". Quirky!


They offer various different types of rooms:

  • Dorms - Bunk-beds, lockers, showers and toilets located near to the rooms
  • Single, double and twin rooms - Non-sharing, more privacy
  • Double rooms plus  - Private WC, and breakfast included
  • Family rooms - Private rooms for 4 to 6 people
  • Tiny rooms - Perfect for couples, has private WC 


The hostel holds up to 215 guests and has many different features, including a restaurant and bar, lounge area, heated outdoor patio, tourist information desk, laundry room, old school gym, guest kitchens, meeting room, free WiFi, and more.


Reykjavík Downtown Hostel


This boutique hostel is situated close to the old harbour area. It is based on a quiet residential street and was recently voted the best HI hostel in the world by guests. 


They offer a variety of room types, as seen below:

  • 4 bedded dorms - mixed
  • 10 bedded dorms - mixed
  • Female-only dorms - request only
  • Family rooms - 5 person
  • Double/twin rooms - both shared and private facilities
  • Single rooms - request only


All rooms have electronic key card access, top quality mattresses, fresh linen, reading lights and free Wifi. The hostel also offers lockers, luggage storage, a self-catering kitchen, laundry facilities and a Café/bar. 

There is 24/7 front-desk assistance, who will be happy to help with booking tours/arranging reservations. 


Hlemmur Square


Their website states that 'Hlemmur square hotel & hostel in Reykjavík combines luxury hotel and upscale hostel accommodations under one roof. Named for the central meeting spot that once served as a watering hole for travellers and their horses, Hlemmur Square is quickly becoming an extension of the city's downtown neighbourhood'. 

Both a Hotel and Hostel, Hlemmur Square is a perfect location for those working on a budget and those who are looking for something a bit more upper-class.

But we're discussing the hostel, which is located on the 3rd and 4th floors and is upscale dormitory style accommodation. They are decorated to a high standard and have beds which are custom made to be completely noise free. The rooms have seating areas, large lockers for every guest and blackout curtains. 

The guests are provided with access to all the facilities such as food service, bar and also two kitchens where you are able to cook. 


Akureyri Backpackers

Akureyri Backpackers is a family run and friendly hostel in the centre of Akureyri. It is perfect for those of you looking for budget accommodation in Akureyri. The hostel offers affordable accommodation with necessary facilities. It is the perfect sleeping-point for those of you looking to explore the northern parts of Iceland and Lake Mývatn, as it is located only an hour away.


Akureyri Backpackers Hostel has 102 beds over 3 floors, with different choices of rooms to suit your needs. They offer:

  • 8 bedded-room (mixed) - Mixed for up to eight people. Free Wifi, free sauna and kitchen facilities
  • 6 bedded-room (mixed) - Mixed for up to six people. Free Wifi, free sauna and kitchen facilities
  • 4 bedded-room (mixed) - Mixed for up to four people. Free Wifi, free sauna and kitchen facilities
  • Private/double/twin rooms (all private) - Double or single occupation. Free Wifi, free sauna and kitchen facilities


All of the dorms and private rooms have shared bathroom facilities, and also a sauna free to use for guests. 


Selfoss HI Hostel


This hostel is located in Selfoss, a small town in the south of Iceland. It has supermarkets, restaurants and swimming pools. Popular tourist attractions such as the Golden Circle are less than an hour away. 


Selfoss HI Hostel offers:

  • 10 bedded dorms - mixed
  • Female-only dorms - request only
  • Family rooms - 5 person
  • Double/twin rooms - both shared and private facilities
  • Single rooms - request only

The reception is only open from 16:00 - 22:00, but it is open all year round. The hostel offers Free WiFi, self-catering kitchen, BBQ, laundry facilities, games room and luggage storage. 

This hostel is perfect for those of you looking to explore the south coast but not wanting to drive all the way back to Reykjavík. Selfoss has everything you need and is very calm and quiet. 


Grundarfjörður HI Hostel


The Grundarfjörður hostel is located in the picturesque fishing village famed for its appearance in the movie 'The secret life of Walter Mitty'. This hostel is a great location for those of you looking to experience Snæfellsnes, Snæfellsjökull and the photogenic Mt. Kistufell. 

The hostel has very colourful rooms and offers rooms such as:

  • Dorms - Shared facilities
  • Double/twin rooms - Shared or private
  • Single rooms - Shared facilities


Within the hostel, you will find free WiFi, bed linen and towels, a lounge area and also self-catering kitchen and dining area. You can also arrange breakfast and lunch by speaking with the front desk staff and also pre-book a packed lunch for you to take on your adventures. 


Korpudalur HI Hostel


Set in a vintage farmhouse in the Westfjords, Korpudalur hostel is the perfect place for people wanting to relax and leave the mayhem of city life behind. There are plenty of breathtakingly beautiful hiking paths surrounding the hostel and also a beach called Hvítsandur which is opposite Flateyri village (around 5km from the hostel). This is a great location to stay if you're looking to explore the Westfjords, particularly the northern section and Ísafjörður


The hostel offers a variety of room times with both shared and private facilities:

  • Dorms - Shared facilities
  • Double/twin rooms - Shared or private
  • Single rooms - Shared facilities
  • Family rooms - Up to 5 people


The hostel has everything you need to make your stay comfortable, including free WiFi, self-catering kitchen, laundry facilities, BBQ and even bicycles you can rent to go and explore the local nature from a different angle.


Dalvík HI Hostel


Located in the friendly fisherman village Dalvík, this hostel is perfect for people travelling the north of Iceland and exploring the wonders of Tröllaskagi peninsula and the Eyjafjörður area. There is a harbour where the ferry leaves for Grímsey, here you can step over the Arctic Circle after admiring whales, puffins and the view to the magnificent north coast on the way.


The hostel offers the following room-types:

  • Dorms - Shared facilities
  • Double/twin rooms - Shared or private
  • Single rooms - Shared facilities
  • Family rooms - Up to 5 people


The hostel has all the necessary facilities such as free WiFi, bed linen and towels, self-catering kitchen and dining area. It is also possible to arrange breakfast, lunch and dinner. 

There are plenty of hiking trails in the area and the famous Kaldi Brewery is located just outside of Dalvík, where you can literally bathe in beer!


Hafaldan Hostel - Seyðisfjörður


This hostel is actually split into 2! One is inside an old hospital (creepy!) and the other in the harbour. The hospital-hostel was recently renovated and now offers a fantastic shower and sauna area whilst the harbour-hostel (which is located just on the south side of Seyðisfjörður) has the most breathtaking views of the fjord.

Both locations offer free Wifi, fresh linen and towels, self-catering kitchens and dining areas as well as seating. There are also laundry facilities for a small charge.


The hostels offer the following room-types:

  • Dormitory bed - 6 bed mixed room. Shared facilities.
  • Double/twin room - Shared facilities
  • Triple/Family of four - Shared facilities
  • 4 or 5 bed private - Private facilities
  • Double deluxe - Private facilities
  • 4 bed deluxe - Offers both double and twin beds, also private facilities