Iceland is a stunning country characterized by contrasting wonders such as mysterious black sand beaches and snowy ice-capped mountains. This island nation is a must-see for people who want to experience adventure and appreciate natural beauty up close. Backpackers and travelers from all over the world have flocked to Iceland to see marvels like the dancing Northern Lights. This increase in tourism has led to the development of many hostels to accommodate the influx of people. 

Top 10 Hostels In Iceland

Now that you’ve made the wise decision to travel to Iceland, where should you stay? The top 10 Hostels in Iceland will have varying levels of comfort and amenities. What you are looking for in a hostel and where you want to travel to will determine where you stay. 

Some hostels offer everything from heated outdoor patios to free events like movie nights, music events, and even complimentary breakfast. Whether you are looking for the most affordable prices, a private room, or sheer luxury, Iceland has a place for everyone. Let’s learn more about where you can have the most comfortable stay for your varying needs.  

Top Hostels in Iceland

There are many amazing hostels on this Nordic island. Several factors influence what rewards a hostel with the distinction of being the best such as location, price, and amenities. Ideally you will stay close to sights you want to see such as the Hekla Volcano located in South Iceland. The price is another crucial factor considering how expensive Iceland can be for food, gas, and housing. Amenities allow people to feel comfortable and cared for during their stay so any freebies are welcome.  The Top Hostels in Iceland ranked based on specific needs are as follows: 

1. Reykjavik Loft HI Hostel: Best Overall Hostel and Party Hostel
2. KEX Hotel: Best Hostel in Reykjavik 
3. Base Hostel: Best Hostel by Keflavik Airport
4. Galaxy Pod Hostel: Best Hostel for Solo Travelers
5. Vatnsholt: Best Hostel by the Golden Circle
6. Grundarfjördur Hostel: Best Hostel for Snæfellsnes Peninsula
7. Hlemmur Square: Best Hostel for Couples
8. Midgard Base Camp: Best Hostel with Private Rooms
9. Akureyri Backpackers: Best Hostel for Backpackers 
10. Bus Hostel: Best Economical Hostel 

Reykjavik Loft HI Hostel

This hostel in Reykjavik has won numerous awards in the past and was voted best hostel in Iceland for two years in a row. It’s no wonder Loft HI Hostel is so acclaimed. They have a homey atmosphere and provide many free events like karaoke, pub crawls, yoga, and drag shows. They also have a beautiful rooftop terrace with amazing views of Reykjavik, the capital city of Iceland. There’s even a mix of rooms you can choose from, such as private rooms and dorms. In the common room, you can easily make friends and play board games or read books. The entire hostel has free Wi-Fi including in their on-site bar and café. These locations are also great spots to make friends. This hostel is centrally located and perfect for the solo traveler, couple, or group of friends. 

KEX Hostel 

KEX means biscuit and it’s aptly named because it’s located inside of an old biscuit factory. This hostel has a fun ambience encased in a modern yet rustic aesthetic. There is vintage artwork throughout and a floor to ceiling library that is perfect for any bookworm. There’s also an outdoor heated area for you to sit, socialize, and take in the beautiful views. They of course provide the all-important free Wi-Fi and airport transfers. The room types include private rooms, family rooms and dorm-style. Then when you walk outside you are right in the pulse of downtown Reykjavik and are steps away from many attractions. These include trendy bars, interesting museums, fun clubs, popular restaurants and soulful music venues. You can rent or hire a bike for the day from KEX and explore to your heart’s content. 

Base Hostel

Base Hostel is dorm-style hostel that is conveniently located when you have an early flight. It’s so close to the airport and near many Icelandic sightseeing staples. These features include the luxurious Blue Lagoon, the steamy Reykjanes Geothermal Park, frigid ice caves, and healing hot springs. The amenities include free Wi-Fi, 24-hour reception, and a gorgeous bar for socializing. There is a great communal kitchen that is fully equipped. This shared kitchen is a great space to make meals while conversing with other travelers. They also have new shared bathroom and laundry facilities.

Galaxy Pod Hostel

Have you ever slept in a space pod? Well if you are a solo traveler, there is nothing grander than sleeping in a Galaxy Pod memory foam bed. It’s the perfect place to relax and unwind after a long day exploring the sheer beauty of Iceland. Each pod comes with a power plug, light, pillows, alarm clock, fans, security box, and free Wi-Fi. When you have rested, remember you are nestled in the heart of downtown Reykjavik and can walk to many attractions. They also have rooms for couples, families, and groups who are on a budget. 

Vatnsholt Hostel

This hostel is in the top 5 because it is a completely renovated farmstead located near the Golden Circle. The awe-inspiring view is the best in Iceland because it is the most expansive. You can clearly see notable features such as the beautiful Vestmannaeyjar Islands, the impressive Eyjafjallajökull volcano, and the famous Hekla Mountain. It is also very close to the capital and has an easy connection to the highways. The rooms are quaint and have either private or shared bathrooms. The on-site restaurant has the best quality food that comes fresh from the farm or locally. 

Youth Hostels in Reykjavik Iceland

There are many youth hostels in Reykjavik Iceland such as the top two hostels in this list and more. The two we will highlight are Akureyri Backpackers and Bus Hostel. 

Akureyri Backpackers Hostel is great for travelers who are backpacking through the dynamic Iceland terrain. This hostel has free Wi-Fi, outdoor terrace for socializing, and it’s near many bars, cafés and restaurants. The Bus Hostel is cheekily named because it is located next to a bus stop hub. You also get a free Smart Bus pass by staying here. It’s a very affordable hostel with eclectic décor and an on-site bar.

Map of Hostels in Iceland

There are many hostels scattered throughout Iceland. Some of the most common locations and cities in Iceland to travel to are Reykjavik, the South Coast, the North, and the Westfjords. You can find a map of hostels in Iceland on the official Inspired by Iceland website. It has a comprehensive list of all forms of accommodations. But you can search for hostels and a specific region like the Highlands. Below is a shortened list of recommended hostels in two of these popular areas. 

The South Coast:

1. Efra-Sel Hostel
2. Selfoss Hi Hostel
3. Höfn HI Hostel

The Westfjords:

1. Sima Hostel
2. Iceland Visit Hostel
3. Broddanes Hi Hostel

Where to Stay in Iceland?

Iceland has a hostel that is tailor-made to meet your needs and preferences. Now that you have a better idea of where you can stay in Iceland go ahead and book your trip.