10 Best Hostels In Reykjavík, Iceland - Updated 2023


The capital city of Iceland, Reykjavik is one of the world’s most remarkable capitals. Although this stunning city has a relatively small size, it is brimming with vibrancy, culture and excitement. This town is home to breathtaking natural wonders like the beautiful Northern Lights and the Blue Lagoon Geothermal Spa, as well as several thrilling adventure tours, fascinating museums, world-class restaurants and bars, bubbling nightlife, art galleries, shops and more. Reykjavik also has a broad range of accommodation options to suit every preference and budget; from luxurious hotels to charming, homely hostels and shared homes. If you are making a trip to this exciting city, check out these best hostels in Reykjavik, Iceland, for a lovely stay.

1. Loft Hostel (from USD 73)

Beautiful and cozy, Loft Hostel is an eco-friendly place to stay in the middle of the city. Located just a few steps from Laugavegur – the city’s main bubbling center, this accommodation offers its guests comfortable guest rooms with private bathrooms, or dormitory quarters with shared bathrooms. The hostel is fitted with features like free Wi-Fi, a rooftop terrace and a bar where you can enjoy entertaining live music performances. The rooms here are spacious and well furnished. With the accommodating and welcoming staff on hand, as well as social events regularly hosted on-site, this hostel is a superb place to stay and fully experience the city.

Loft - HI Hostel

Wifi Available

Address: Bankastræti 7
Accommodates: 4

Meeting/banquet facilities Bar Terrace Non-smoking rooms Airport shuttle Facilities for disabled guests Family rooms Internet services

2. Reykjavik City Hostel (from USD 49)

Located beside a geothermal heated swimming pool, Reykjavik City Hostel offers remarkable accommodations with either shared or private bathrooms. This eco-certified hostel features several things to give you an enjoyable stay in the city. The hostels feature a coffee bar, free Wi-Fi, communal kitchens and free parking on the hostel’s premises. Guests can also enjoy a delicious and organic breakfast buffet and access to a rooftop terrace with great views. It is close to Reykjavik City Center, and the hostel’s staff give the very best tips on places to see to make your trip an unforgettable one.

Dalur - HI Hostel

Address: Sundlaugavegur 34
Accommodates: 6

Parking Restaurant Bar Garden Terrace Non-smoking rooms Laundry Facilities for disabled guests

3. Laekur Hostel (from USD 42)

Enjoy relaxing on comfortable sofas and beds when you stay in this impressive guest house near the city center. Laekur Hostel offers well-furnished guest rooms with shared bathrooms, and features like a communal kitchen, a restaurant, a bar, family rooms, a terrace and free Wi-Fi. This hostel is spotless and well maintained, with helpful staff available around the clock. Although it’s located just off the town, you can easily walk from Laekur Hostel to some places of interest in the city.

Lækur Hostel

Wifi Available

Address: Laugarnesvegur 74a
Accommodates: 1

Parking Restaurant Bar Terrace Non-smoking rooms Airport shuttle Family rooms Free parking

4. Bus Hostel (from USD 47)

With an attractive glass structure, Bus Hostel has an awe-inspiring appearance, as well as outstanding services. This hostel offers dormitory-style rooms that are spacious and feature natural lighting and shared bathrooms. There are also rooms with private baths. The hostel boasts of facilities like a communal kitchen and a remarkable terrace as well as free parking, free Wi-Fi access and storage rooms for ski gears. As an added advantage, bus tours of the city depart from the hostel daily so you can step out of your room and explore the city.

Bus Hostel

Wifi Available

Address: Skógarhlíd 10
Accommodates: 2

Parking Bar 24-hour front desk Terrace Non-smoking rooms Airport shuttle Laundry Skiing

5. Kex Hostel (from USD 41)

If you desire an elegant guest house right in the heart of Reykjavik, then Kex Hostel is where you should go. This hostel is located close to many shopping areas and places of interest. Kex offers cozy rooms with private baths and dormitory-style rooms with shared bathrooms. There is also a shared kitchen, on-site restaurant and bar, a shared lounge with very comfortable sofas, a heated outdoor terrace and delicious breakfast buffet meals, served every morning. Its great location makes this guest house one of the best places to stay in the city.

Kex Hostel

Wifi Available

Address: Skúlagata 28
Accommodates: 10

Parking Restaurant Meeting/banquet facilities Bar 24-hour front desk Garden Terrace Non-smoking rooms

6. Reykjavik Downtown Hostel (from USD 27)

Wake up to a sumptuous breakfast buffet served every day at this excellent accommodation near central Reykjavik. Reykjavik Downtown Hostel has on offer very comfortable, well-furnished rooms with private bathrooms or shared bathrooms depending on your preference. The hostel also has a shared lounge with TV, a communal kitchen, a bar, free Wi-Fi access and round-the-clock lobby assistance. You can also seek the staff’s advice on the most exciting activities to do in the city.

7. Hlemmur Square (from USD 21)

Hlemmur Square is a superb hostel located in a magnificent art décor building constructed in the 1930s. This fantastic hostel offers you great options - including rooms with shared bathrooms and those with private bathrooms and balconies. All its rooms are tastefully furnished with comfortable beds and great lighting, giving this hostel a pleasant ambiance. It also offers two communal kitchens, a bar and café on its premises, as well as free Wi-Fi for its guests to enjoy. Located right in Laugavegur, many of the city’s prominent attractions are just a few steps away.

8. Falkinn Guesthouse (from USD 48)

Sitting majestically along Laugavegur high street, this guesthouse gives you a great place to stay in the heart of Reykjavik. Falkinn Guesthouse features facilities like a shared kitchen, a terrace, a lovely outdoor garden and amenities like free Wi-Fi access in all its rooms. The rooms here are spacious, well lit, clean and fitted with very comfortable beds for your comfort. It sits close to top bars, restaurants and shopping centers. Also, there is a friendly staff on the ground to make your stay satisfying.

9. Hostel

101 Hostel is a simple and comfortable accommodation located near the main shopping area of Laugavegur. This hostel offers brightly lit dormitory-style rooms with shared bathroom. Some of its places have private balconies, and all the hostel’s rooms are fitted with free Wi-Fi access. Other features of this hostel include a communal kitchen, luggage storage hold, terrace access outdoor furniture and a fabulous outside garden. With the whole city literally at your doorstep, the cozy rooms of 101 Hostel give you a superb place to stay in Reykjavik.

10. Galaxy Pod Hostel (from USD 83)

Take a rather exciting trip into the future in the world’s northernmost city when you stay at this remarkable hostel. Galaxy Pod Hostel is a futuristic style hostel with features like sleeping capsules, free Wi-Fi, dormitory rooms, and a VR arcade room. Each sleeping capsule looks like something straight out of a sci-fi movie and offers you adjustable lighting, safety deposit box, flat-screen TVs, fan, doors for privacy and even in-built alarm systems. This hostel is in Laugavegur, so you are right in the heart of the city’s central hub. There is a shared lounge area with a huge TV to give you even more comfort and enjoyment.

Galaxy Pod Hostel

Wifi Available

Address: Laugavegur 170
Accommodates: 2

Parking Bar Non-smoking rooms Free parking Internet services Lift Express check-in/check-out Safety deposit box

Enjoy the rich culture in Reykjavik

Reykjavik is one of the best places to visit in Europe. This small city is rich in culture, beautifully designed and loaded with natural wonders too. Enjoy seeing the magical Aurora Borealis (Northern Lights) among other breathtaking wonders, dining in exquisite restaurants and bars and exploring excellent art galleries and museums. And if you don’t feel like staying in any of the city’s luxurious hotels during your visit, you can check out any of the best hostels in Reykjavik, Iceland.

Disclosure: Trip101 selects the listings in our articles independently. Some of the listings in this article contain affiliate links.

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Salim is a lover of adventure and creativity. He is fascinated with the beauty of nature and the great African arts and history. He has visited many of the waterfalls and museums in Nigeria and...Read more

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