A Comprehensive Guide to the Best Hostels in Reykjavik

Where you sleep shapes your whole trip. If you’re still weighing up your options in Reykjavik, this guide cuts through the noise and matches you with a hostel that actually suits how you travel — your budget, your pace, your priorities.

Best Hostels in Reykjavik by Travel Needs

• For Families: Reykjavik Dalur HI Eco Hostel
  Spacious private rooms and a genuinely calm setting make this eco-friendly spot a solid pick for families. It sits close to parks and geothermal pools, so there’s plenty to keep both kids and parents happy.

• For Solo Travelers: Baron’s Hostel
  Centrally located and pleasantly quiet, this clean, tidy place is easy to come back to after a day of wandering. Solo travellers tend to feel right at home here.

• For Female Travelers: Baron’s Hostel
  Female-only dorms, keypad room access, and sensible security measures make this a comfortable, low-stress option for women travelling alone.

• For Couples: KEX Hostel Reykjavik
  Vintage-inspired decor, cozy lounges, and a great downtown location — KEX pulls it off without feeling like it’s trying too hard. A decent base for couples who want character alongside convenience.

• For Light Sleepers: Nordic Hostel
  Pod-style beds with blackout curtains and soft duvets. If noise in shared rooms usually keeps you up, this place is worth a look.

• For Budget-Conscious Guests: Student Hostel (Gamli Gardur)
  Simple, clean, and easy on the wallet — particularly in summer. No frills, but nothing to complain about either.

• For First-Time Hostel-Goers: Lækur Hostel
  A boutique feel, friendly staff, and a relaxed café atmosphere make this a gentle introduction to hostel life. Less intimidating than you might expect.

• For Nightlife Seekers: Reykjavik Loft HI Hostel
  A rooftop terrace and regular social events keep things lively here. If you want to make friends and stay out late, this is your spot.

• For Multi-Day Tour Travelers: Bus Hostel Reykjavik
  A short walk from the Domestic Airport and a convenient bus terminal. Practical above all else — ideal if you’re piecing together tours of Iceland’s bigger attractions.

The Reality of Staying at a Hostel in Reykjavik

Travelling on a tight budget in Iceland doesn’t mean you have to put up with grim shared bathrooms and paper-thin walls. Reykjavik’s hostels have moved well past the stereotypes — no sticky floors, no 3 AM guitar sessions (mostly).

The better ones are genuinely well-kept: clean kitchens, female-only dorm options, private rooms when you need them, and communal spaces that feel welcoming rather than chaotic. Solo travellers in particular tend to appreciate the low-key social side — it’s easy to chat over breakfast without the whole place turning into a party.

Honestly, you won’t be spending much time inside anyway. Iceland has a way of pulling you outdoors from early morning. The hostel becomes a place to dump your hiking gear, sleep well, and get back out there. Putting the savings towards a glacier tour or an afternoon at a hot spring makes a lot more sense than paying hotel prices for a room you’ll barely use.

What to Expect in Terms of Costs

Hostels in Reykjavik are among the most economical accommodation options in Iceland. Here’s a quick overview of anticipated costs:

• Shared Dormitory Beds: Typically range from $35 to $65 nightly (4,800 ISK to 9,000 ISK).
• Private Rooms: These can go from $75 to $185 (10,000 ISK to 25,000 ISK), varying by season and whether they share a bathroom.

Note: Prices peak in summer from June to August and dip during the quieter winter months. Most hostels provide free Wi-Fi and access to shared kitchens, with some including breakfast in the nightly fee. Remember to confirm details regarding linens and towels to avoid surprises.

Rates shift throughout the year, but hostels consistently undercut hotels and vacation rentals by a meaningful margin. Book early for summer — last-minute availability is rare and the prices reflect it.

Preparing for Your Hostel Stay

A hostel stay in Reykjavik is a smart call on the budget front, but a bit of prep goes a long way. Keep these in mind before you arrive:

• Bring a Photo ID: You’ll need a government-issued form of ID when checking in.
• Keep Booking Confirmation Handy: Ensure you have your reservation details available, either printed or on your phone.
• Check-in and Check-out Times: Most hostels welcome you around 3 PM and expect you to check out by 10 or 11 AM. However, always verify specific times.
• Traveling with Minors: Guests under 18 may require parental consent or the company of a guardian. Check the specific hostel’s policies before booking.

Sort those basics out in advance and you’ll hit the ground running from the moment you arrive in Reykjavik.

The Top 8 Hostels in Reykjavik

Here’s a closer look at the hostels worth your attention in Reykjavik, ranked by overall appeal across location, atmosphere, and what they actually offer:

8. Baron’s Hostel

Sitting close to Hallgrimskirkja Church and Laugavegur Shopping Street, Baron’s Hostel runs an automated check-in system that takes the faff out of arrival. It’s calm, tidy, and well-suited to independent travellers who want comfort without a lot of noise around them.

7. Student Hostel (Gamli Gardur)

This one operates out of the University’s oldest dormitory during summer — which gives it a certain character you won’t find in purpose-built hostels. Non-smoking twin rooms, shared kitchens, and a relaxed social room. Budget-friendly and perfectly decent.

6. Lækur Hostel

Tucked into the quiet Laugardalur neighbourhood, Lækur Hostel has mixed and female-only dorms alongside a café, bar, and terrace. The vibe is unhurried — good for winding down after a long day rather than staying out late.

5. Nordic Hostel

The pod-style setup here is the main draw — more privacy than a standard dorm, but you’re still in the mix with other travellers if you want to be. Modern throughout and a solid pick for anyone who values a decent night’s sleep above all else.

4. Reykjavik Dalur HI Eco Hostel

Out in Laugardalur Valley, this eco-certified hostel is genuinely peaceful. Children’s play areas, organic breakfast options, and easy access to nature make it the obvious choice for families. It’s a bit removed from the city centre, but that’s part of the appeal.

3. Bus Hostel Reykjavik

Close to the airport and the bus terminal, this one is built for travellers passing through or heading straight out on a tour. Flexible room types, a lively bar, and staff who know the transport options well. Practical and friendly in equal measure.

2. KEX Hostel Reykjavik

Housed in a former biscuit factory, KEX has a personality all its own. The social lounge fills up most evenings, the shared kitchens are well-equipped, and the room options cover most budgets. One of the better all-round experiences in Reykjavik’s hostel scene.

1. Reykjavik Loft HI Eco Hostel

Right in the heart of the city, with a rooftop terrace that earns its reputation. Eco-friendly, sociable, and well-run, this place suits younger travellers particularly well — though the location and quality of the communal spaces make it appealing across the board.

Practical Tips for Staying at Hostels in Reykjavik

Reykjavik punches above its weight when it comes to hostel quality. A few things to keep in mind to get the most out of your stay:

• Choose the Right Location: Prioritize a hostel near downtown or major bus routes for easier exploration.
• Look for Value Beyond Price: Consider what is included in your rates—essentials like linens and kitchen access can make a difference.
• Assess Amenities: Free Wi-Fi, secure lockers, and laundry services enhance your stay, particularly for longer visits.
• Consider the Atmosphere: Select hostels that match your social preferences—some cater to lively gatherings, while others provide peaceful retreats.
• Pack Essentials: Include a padlock for lockers, a hanging toiletry bag for shared bathrooms, quick-dry towels, and flip-flops for the showers.

Get those sorted and you’re set for a good run in Reykjavik.

Conclusion: Choosing the Best Hostel in Reykjavik

Whether you’re travelling solo, with a partner, or with the whole family, there’s a hostel in Reykjavik that fits. From lively downtown spots to quieter eco-hostels on the edge of the valley, the range is broader than most people expect.

Planning your arrival? Consider booking a Flybus transfer from Keflavik International Airport, giving you easy access to many hostels without the stress of navigating public transport.

And if your travels take you beyond Reykjavik, be sure to explore top hostels across Iceland. Whether embarking on the famed Ring Road or simply soaking in the city’s essence, you’ll find welcoming lodgings ready to accommodate your journey.

FAQs About Hostels in Reykjavik, Iceland

How much does it cost to stay in a hostel?
Shared dormitory beds generally range from $35 to $65 per night, while private rooms fluctuate from $75 to $185, varying by season.

What are the cheapest days to book?
Tuesdays and Wednesdays usually offer the best rates, especially during non-peak seasons.

When should you book?
Aim to book one to two months in advance for summer. During quieter months, a few weeks ahead should suffice.

Are hostels in Reykjavik safe?
Yes, they are generally secure and well-maintained, equipped with locker systems and often manned 24/7.

Do hostels provide towels and linens?
Most include linens for free. Towels may come at a rental fee, especially in shared dorms, so it’s best to check.

Are there private rooms available?
Yes, most hostels offer various private room options along with shared dormitories.

What’s the best hostel for couples?
KEX Hostel and Nordic Hostel both feature stylish private rooms with close access to attractions.

Where can you book a hostel?
Hostels are bookable through platforms like Guide to Iceland or directly via their websites. Don’t forget to consider a Flybus transfer as part of your reservation.