Enchantment awaits you as you plan your visit to the fascinating country of Iceland. On the tightest of budgets, you can still meet charming locals and view breathtaking sights in and around the capital. Not only is Reykjavík a five-hour flight from New York City, it is surrounded by natural beauty that is unimaginable unless you visit. Pack your backpack, your essentials, and a padlock. Here are the ten best hostels in Reykjavik for the budget-minded world traveler.
What to Expect with the Best Hostels in Reykjavik
Niceties and Comforts
While staying in a hostel is cost-effective, do not expect small shampoo bottles or body wash to don the bathroom area. Some do offer free, or discounted, breakfasts. Other than that, bring your own essentials.
Management of Expenses
Plan accordingly if you want to dine out. Although delicious cuisine, the prices can be more than the night’s stay at the hostel. Try visiting the local grocer to make some meals in, or even to share with your newfound travel friends.
Between transportation and food, expect to spend between $40 – $70 USD per day. Remember, fuel is very expensive in Iceland if traveling by rental car.
For more about low-cost Iceland travel, please see our article Iceland On A Budget: 10 Tips to Save Money While Traveling in Iceland.
Roaming The Capital City Area and Beyond
Staying in a hostel will place you directly in or near the hot spots, due to the island’s size and the condensed capital. If not within walking or bike riding distance, shuttle buses are available, such as Flybus and Sterna.
Rental cars are available but may be a bit tricky if you only rent a 2WD. A 4WD will give you more for the money, especially if you plan on going off road. Just be cautious of the gas and trying to utilize your credit cards overseas. Flights and ferries are available as well if you plan on leaving Iceland to venture into areas such as Grimsey or Hrisey.
For more on renting vehicles and other transportation options, we highly recommend the following articles:
- Driving in Iceland Etiquette: Dos and Don’ts
- Hitting the Road in the Land of Fire and Ice: Five Reasons to Rent a Camper Van in Iceland
- 13 Iceland Car Rental Tips
Without any further ado, here are our recommendations for the top ten best hostels in Reykjavik.
- Address: Skúlagata 28, 101 Reykjavík, Iceland
- Phone Number: +354 561 6060
- Website: www.kexhostel.is
In the heart of Reykjavík was a biscuit factory, that has now turned into a hostel. With a sense of the past, mixed with the hipster present, Kex Hostel is sure to fit your needs. Every morning you may join fellow travelers at the Baxtur breakfast buffet.
Stay in shape by working out at their gym and freshen your clothes at the laundromat. If in need of a hair cut or a trim of the beard, make a stop at the barber who is stationed inside of the former vault. If needing to unwind, enjoy the atmosphere of the Text Area while sampling an Icelandic beverage. Wi-Fi is available, so that you may freely post to all of your social media accounts.
- Address: Skógarhlíð 10, 105 Reykjavík, Iceland
- Phone Number: +354 5 350 350
- Website: www.bushostelreykjavik.com
Located directly above the Reykjavík Terminal, the Bus Hostel is ideal for being in the center of it all. After eating breakfast at the buffet, you can leisurely stroll around Iceland by utilizing the Reykjavík Terminal to access the buses for adventures and sightseeing.
Bike rentals are an option, but only during the summer. Free Wi-Fi, lockers, and linens are available. Towels are loaned out after paying a one-time fee. The lobby is accessible 24/7, and parking is free. To relax and unwind, visit their Buzz Bar where they serve up Happy Hour on a daily basis.
Loft Hi Hostel
- Address: Bankastræti 7, 101 Reykjavík, Iceland
- Phone Number: +354 553 8140
- Website: www.lofthostel.is
Eco & Quality certified, Loft Hi Hostel is run by a non-profit organization. Their mission is to provide affordable travel in order to expand one’s knowledge. Loft Hi is directly positioned on the primary shopping street in Reykjavík, and within walking distance of the local hotspots.
Enjoy a fresh cup of coffee, while reading a book from their swap shelf. A fully-equipped community kitchen, 24-hour reception, and complimentary Wi-Fi are just some of the accommodations that will meet your expectations. If you are more of a night owl, then the weekly concerts, karaoke nights, and craft nights will be sure to please.
Loft Hi has a terrace, for breathtaking views, and has plenty of options to choose from by having 4-8 bedded dormitories that are sure to make a decent size traveling group feel more at home.
Galaxy Pod Hostel
- Address: Laugavegur 172, 105 Reykjavík, Iceland
- Phone Number: +354 511 0505
- Website: www.galaxypodhostel.is
For an out of this world experience, Galaxy Pod Hostel features anywhere between a 4 bedroom to a 24 bedroom dormitory. Instead of sleeping on a regular bunk bed, you will be able to rest with ease inside of a pod. Every state-of-the-art pod contains dual fans, your own USB port, and a privacy curtain to separate yourself from other weary travelers.
The hostel is on the 3rd floor, with an elevator, and is wheelchair accessible. Laundry and towels are provided, for an additional fee. With a grocery store across the street, and 24/7 access to the community kitchen, you can whip up a delicious meal for yourself and/or for your companions. Mingle at the bar, or one of the many local restaurants that are nearby.
Within 15 minutes, you can visit the city of Laugardalur that is sure to entertain people of all ages. Or, hang out indoors and take in the mountainous scenery that surrounds the structure itself.
- Address: Laugavegur 105, 105 Reykjavík, Iceland
- Phone Number: +354 415 1600
- Website: www.hlemmursquare.com
Upon being built in the 1930’s, Hlemmur Square was notorious for being a watering hole for travelers and their horses. Over the years, it kept the namesake to correlate between the local hotspots as more of a gathering place for journeyers and locals alike.
Stay in the upscale hostel, which is situated on the 3rd and 4th floors, and features two kitchens and noise cancelation dormitory-style beds. If you desire to have a bit more seclusion; the hotel is on the 5th floor and decorated in modern-style furniture with private balconies.
Concierge is available to assist in booking local excursions to many of the popular attractions. Take a break at the bar and restaurant, and sample local cuisine with Iceland’s popular brews on tap.
- Address: Lindarbraut, 235 Reykjanesbær, Iceland
- Phone Number: +354 420 6050
- Website: www.starthostel.is
Embark on your journey around Iceland, by stepping off the plane and proceeding within five miles to the Start Hostel. As a newcomer to the scene, Start Hostel features accommodations to meet single sightseers, larger groups, and families.
On-site facilities include a children’s playground, communal kitchen, free Wi-Fi, breakfast buffet, and 24-hour front desk assistance. Free parking is also available, if you prefer to rent a car and drive around to see the sights of Iceland.
- Address: Laugavegur 58, 101 Reykjavík, Iceland
- Phone Number: +354 789 6101
- Website: www.101-hostel.hotels-reykjavik-is.com
A favorite among single and younger explorers is the 101 Hostel. It is an adult-only lodging, with sound-proof rooms, and individual climate-controlled heating and cooling system. There is no parking, so be sure to pack your hiking shoes or upload the local shuttle bus schedule. You may mingle with others in the common room, the shared kitchen, or outside in the dining area.
- Address: Baronsstígur 47, 101 Reykjavík, Iceland
- Phone Number: +354 789 1100
- Website: www.hostelb47.is
School groups and weekend warriors enjoy flocking to Hostel B47. With it’s pin-code entrance, you may check-in at any time. Positioned inside of the Heilsuverndarstöðin historical house, and within walking distance of the main shopping district; Hostel B47 provides the convenience of home without breaking the bank.
Dormitory style and private rooms are available, which can be easily booked online. Vending machines are on the grounds, along with a communal lounge and kitchen.
- Address: Laugarnesvegur 74a, 105 Reykjavík, Iceland
- Phone Number: +354 771 9995
- Website: www.laekur.is
Translated in Icelandic with the meaning of “small river or stream”, Laekur Hostel highlights classic Nordic style with contemporary necessities. Free Wi-Fi, dishwasher, and linens are included. It can accommodate individuals, couples, families, along with dorms for a party of 8. A restaurant, café, and bar are onsite for convenience. Reception is available during limited hours, so be sure to contact the hostel if you will be late to check-in.
Reykjavik City Hostel
- Address: Sundlaugavegur 34, 105 Reykjavík, Iceland
- Phone Number: +354 553 8110
- Website: www.hostel.is/hostels/reykjavik-city-hi-hostel
Kid-friendly, and in a mellow environment, Reykjavik City Hostel prides itself on being a Swan Eco Certified hostel since 2004. Positioned in Laugardalur Park, it is host to numerous social activities on the grounds, and is within walking distance to the local stadium along with Iceland’s largest pool and spa. Parking and Wi-Fi are complimentary.
There is an outdoor patio, BBQ area, three kitchens to share, bike rentals, coin-operated laundry facility, and basic mixed-gender or female only dorm rooms. This is definitely one of the best hostels in Reykjavik.
Enjoy Your Stay at the Best Hostels in Reykjavik
Look forward to planning your coolest vacation. Compare the hostels that will best fit your needs, and pack accordingly. Whether you will be traveling as a solo photographer, or hands filled with your children in tow; Iceland is a hot destination to release your cares away among the starry skies.