10 Best Hostels In Reykjavik

Iceland is a small country and an island, meaning that most things are more expensive that some travelers are used to.

One way to save on expenses is to stay in a hostel instead of a pricey hotel. These Iceland hostels offer clean accommodations and easy access to all that the city of Reykjavik has to offer.

Here are the best hostels in Reykjavik!

10. Galaxy Pod Hostel

Galaxy Pod hostel in Reykjavik

For something a little futuristic, why not visit Reykjavik in a capsule?

Galaxy Pod Hostel is one of the best hostels in Reykjavik and also one of the most unique. Galaxy Pod provides capsules for travelers to stay in – each capsule comes with a safety deposit box, flat-screen television, and privacy curtain.

An arcade is on-site, and private parking is available for no charge.

Galaxy Pod is located at the East end of the main pedestrian shopping area, and just about a mile away from Central Reykjavik. If sleeping in a capsule is not your speed, dormitory sleeping options are also available at this Reykjavik hostel.

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9. KEX Hostel

kex hostel room

Want to know a bit about Reykjavik’s past but don’t want to give up modern amenities? Then KEX Hostel is best hostel in Reykjavik for you.

Located in an old biscuit factory, KEX blends Iceland’s history with a modern industrial feel. The building also is home to artists’ studios.

The Reykjavik hostel features a cafe, bar, lounge, and a heated outdoor patio to socialize with new friends. KEX Hostel also offers female only rooms. The Harpa Concert Hall is a short walk along the bay from the hostel, as is the Sun Voyager sculpture.

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8. 101 Hostel

101 hostel room

Located on the main shopping street of Laugavegur, 101 Hostel is one of the best hostels in Reykjavik. This Reykjavik hostel feels just like home, with a warmingly decorated communal kitchen, and an enclosed backyard.

In addition to the many shops nearby, 101 Hostel is just minutes away from the tallest building in Reykjavik, the famous Hallgrimskirkja. Hallgrimskirkja is great for getting an all encompassing view of the city, bay, and nearby mountains. After visiting Hallgrimskirkja, why not skip over to Sundhollin Swimming Pool and relax?

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7. Reykjavik City HI Hostel

hostel outside garden

Located just outside of the City Center, Reykjavik City HI Hostel is an eco-certified hostel takes all of its travelers’ considerations into account – there are organic food options in its three kitchens, fair-trade coffee at the coffee bar, and even a space where travelers can share food with each other.

The friendly staff can help travelers rent a car or bike to help get around town. Reykjavik’s largest swimming pool, Laugardalslaug Swimming Pool, is right next to the hostel where you can relax in the geothermally-heated hot-tubs, go down two different water slides, or even play mini-golf.

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6. Hlemmur Square

Hlemmur Square hostel

Hlemmur Square is a luxury hostel in Reykjavik, with upscale features that will make you think you are an a hotel.

The Reykjavik hostel has spacious rooms, with custom made beds, quality linens and pillows, blackout curtains for long summer days, and colorful, modern decor. Two lounges and a happy hour bar will allow travelers to connect with others.

Located just northeast of Hallgrimskirkja in an art deco building, Hlemmur Square is close to shops, and a short walk from the City Center. A bus stop just outside of the hostel allows easy pick-up and drop-off for all of the major sightseeing tours in Reykjavik.

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5. Oddson


If you are looking for lodging with some flair, Oddson is the Reykjavik hostel for you, or you and your partner as it is consistently rated one of the best hostels for couples in Reykjavik.

With bright colours, and artwork on display from local and international artists, Oddson is located in Eastern Reykjavik, near the Old Harbour and several of the city’s art museums.

Reykjavik City Center is about a half-mile away. Oddson offers private and dormitory room options, as well as an Italian Cafe and bar on site. On the roof is a hot tub with views of the bay.

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4. Retro Hostel

retro hostel

Located just South of the City Center of Reykjavik, Retro Hostel is one of the best hostels for solo travelers in Reykjavik.

With comfy beds you are sure to feel well rested after exploring all that Reykjavik has to offer. Retro Hostel is within easy walking distance of the Pearl – the dome shaped building with a rotating restaurant that allows you to get a 360 degree view of Reykjavik while you enjoy your meal.

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3. Falkinn Guesthouse

Falkinn Guesthouse

For something a bit more upscale than a dormitory, look no further than Falkinn Guesthouse.

With studios, and double room options, Falkinn is a great choice for couples looking for an ideal location in Central Reykjavik. Shops, restaurants, and bars are all short walks away. Inside, Falkinn is spotlessly clean with an updated kitchen.

After a long day exploring what Iceland has to offer (maybe a Golden Circle Tour?), you will be pleased to find complimentary snacks waiting for you in your room.

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2. Laekur Hostel

laekur Hostel

For arguably the best value in all of Reykjavik, look no further than Laekur Hostel – one of the best hostels in Reykjavik for backpackers.

Located between Laugardalslaug Swimming Pool and Sigurjon Olafsson Museum, Laekur offers an on-site restaurant, communal kitchen, and has bicycles available to rent, and all at prices that can’t be beat!

The interior of the building is decorated in a modern style, and the hostel boasts some of the best coffee in all of Reykjavik.

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1. Loft HI Hostel

loft hi hostel

Loft HI Hostel is one of the best party hostels in Reykjavik.

Loft provides a central location to all that Reykjavik has to offer, though you may not even need to leave the hostel – There are weekly social events hosted on site all year long. Such events are yoga, live music, water painting classes, and table football tournaments.

Decorated with lots of color, Loft isn’t just your average Iceland hostel. With a variety of sleeping options, there is something for everyone. There is even a rooftop terrace and bar that is a great way to begin your evening. Afterwards, the Reykjavik nightlife is just out the door.

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