The 7 Best Hostels in Reykjavik

Last Updated: June 10, 2025 by Mick

Reykjavik, the lively capital of Iceland, is a city where modern culture blends with breathtaking natural landscapes. For budget-conscious travellers, discovering the best hostels in Reykjavik is key to enjoying a memorable stay without spending too much. This guide showcases the top hostels in the city, each offering comfortable and affordable accommodations suited to various travel styles. These hostels provide the perfect setting to meet new friends, unwind after a day of exploration, and soak in the unique charm of Reykjavik.

Reykjavik is a small but bustling city, known for its colourful buildings, friendly locals, and rich cultural scene. Main attractions include the iconic Hallgrímskirkja church, which offers panoramic views of the city from its tower, and the Harpa Concert Hall, famous for its striking architecture and cultural events. Visitors can also explore the National Museum of Iceland to learn about the country’s history or take a stroll along the scenic waterfront to see the Sun Voyager sculpture. Reykjavik is also the gateway to stunning natural wonders, such as the Blue Lagoon, Golden Circle, and Northern Lights, all easily accessible from the city.

Hostels in Reykjavik offer more than just a place to sleep; they provide a home base where travellers can connect with others, share stories, and plan their adventures. These hostels are known for their welcoming atmospheres, friendly staff, and convenient locations. Many hostels offer additional amenities like communal kitchens, cosy common areas, and organized social events, making them ideal for solo travellers and groups alike.

Quick Introduction to Hostels in Reykjavik

Hostels in Reykjavik provide an excellent lodging option for travellers seeking comfort, affordability, and a social atmosphere. These hostels cater to a variety of travellers, from solo adventurers to groups of friends, offering a range of room types and styles. With their welcoming environments and community-focused amenities, hostels in Reykjavik are perfect for those looking to connect with fellow travellers and immerse themselves in the local culture.

Here are some of the things you should consider before booking a hostel in Reykjavik:

  • Price - Staying at a hostel in Reykjavik is a budget-friendly option, especially considering the city's generally high cost of living. Dormitory beds typically range from €30 to €60 per night, depending on the season and the specific hostel. Private rooms offer more privacy and can cost between €80 and €160 per night. These prices provide excellent value, especially when considering the central locations and the range of amenities included.
  • Location - Many hostels in Reykjavik are strategically located within walking distance of the city’s main attractions. Whether you want to explore the bustling Laugavegur shopping street, visit the iconic Hallgrímskirkja church, or enjoy the nightlife and dining options, you'll find a hostel nearby. This convenience makes it easy for travellers to experience the best of Reykjavik without the need for extensive transportation.
  • Amenities/Services - Hostels in Reykjavik offer a variety of amenities and services to enhance the guest experience. Common features include free Wi-Fi, fully equipped communal kitchens, comfortable lounge areas, and laundry facilities. Some hostels also provide complimentary breakfast, on-site bars, and organized social events, such as city tours and pub crawls. These amenities not only add value to your stay but also help create a vibrant, community-oriented atmosphere.
  • Staff - The staff at Reykjavik hostels are known for their friendliness and helpfulness. Many are locals or long-term residents who are passionate about sharing their knowledge of the city and Iceland’s natural wonders. They are always ready to offer tips on the best places to visit, eat, and explore, ensuring that guests have an enriching and enjoyable stay. The staff's dedication to excellent service helps create a welcoming and supportive environment for all travellers.

Best Hostels in Reykjavik - Quick Answers

Here's a summary of the best hostels in Reykjavik organized into different categories:

The Best Hostels in Reykjavik

Here’s my comprehensive guide to the 7 best hostels in Reykjavik:

1. Reykjavik - Loft HI Eco Hostel

Best Hostels in Reykjavik - Reykjavik Loft HI Eco Hostel Common Area

Reykjavik - Loft HI Eco Hostel is centrally located on Reykjavik's main shopping street, Laugavegur, putting it in the heart of the city's vibrant cultural and social scene. The hostel's modern decor features bright, open spaces with eco-friendly designs and plenty of natural light. The vibe is warm and welcoming, making it an ideal spot for meeting other travellers.

The atmosphere is lively yet relaxed, providing a perfect balance for guests looking to socialize or unwind. One of the unique features of Loft HI Eco Hostel is its spacious rooftop terrace, which offers panoramic views of Reykjavik, making it a popular gathering spot for guests.

Best Hostels in Reykjavik - Reykjavik Loft HI Eco Hostel Dorm Room

The rooms at Loft HI Eco Hostel are clean, modern, and comfortable. Guests can choose from dormitory-style rooms or private rooms, all designed with simplicity and comfort in mind.

The hostel offers a variety of amenities and services, including free Wi-Fi, a fully equipped communal kitchen, cosy lounge areas, and an on-site bar. The staff is friendly and knowledgeable, always ready to help with travel tips and local recommendations.

A quick overview of Loft HI Eco Hostel

  • Central location on Laugavegur
  • Eco-friendly design and practices
  • Spacious rooftop terrace with city views
  • Fully equipped communal kitchen
  • On-site bar and lounge area

Dorm beds from €60, Private rooms from €155
Check Prices On Hostelworld!

2. Baron's Hostel

Best Hostels in Reykjavik - Barons Hostel Kitchen

Baron's Hostel is conveniently located near Reykjavik's city centre, providing easy access to major attractions, restaurants, and nightlife. The decor is a blend of modern and rustic elements, featuring wooden accents and cosy furnishings that create a warm and inviting atmosphere. The vibe at Baron's Hostel is friendly and relaxed, making it a great place for solo travellers and groups to connect.

The atmosphere is lively yet homely, with a focus on comfort and community. One of the unique features of Baron's Hostel is its charming common areas, including a spacious lounge and a well-stocked library, perfect for unwinding after a day of exploring.

Best Hostels in Reykjavik - Barons Hostel Dorm Room

The rooms at Baron's Hostel are comfortable and functional, offering both dormitory-style accommodations and private rooms. Each room is designed with simplicity and comfort in mind, ensuring a restful stay.

The hostel provides a variety of amenities and services to enhance the guest experience. These include free Wi-Fi, a communal kitchen, laundry facilities, and a cosy lounge area. The staff is friendly and always ready to assist with travel tips and local insights.

A quick overview of Baron's Hostel

  • Convenient location near Reykjavik's city centre
  • Modern and rustic decor
  • Spacious common areas, including a lounge and library
  • Well-equipped communal kitchen
  • Friendly and helpful staff

Dorm beds from €39, Private rooms from €101
Check Prices On Hostelworld!

3. Hostel B47

Best Hostels in Reykjavik - Hostel B47 Breakfast Room

Hostel B47 is located in the heart of Reykjavik, within walking distance to the city's main attractions, shops, and vibrant nightlife. The hostel is housed in a historic building that combines traditional Icelandic architecture with modern design elements, creating a unique and stylish environment. The vibe at Hostel B47 is trendy and youthful, making it a popular choice for young travellers and backpackers.

The atmosphere is dynamic yet relaxed, with plenty of common areas for socializing and meeting new people. One of the unique features of Hostel B47 is its self-check-in system, allowing guests the flexibility to arrive at any time.

Best Hostels in Reykjavik - Hostel B47 Dorm Room

The rooms at Hostel B47 are clean and modern, with options ranging from dormitory-style rooms to private accommodations. Each room is designed to maximize comfort and functionality.

The hostel offers a range of amenities and services to ensure a comfortable stay. Guests can enjoy free Wi-Fi, a communal kitchen, laundry facilities, and cosy lounge areas. The staff is friendly and always available to provide local tips and assistance.

A quick overview of Hostel B47

  • Central location in the heart of Reykjavik
  • Historic building with modern design
  • Trendy and youthful vibe
  • Self-check-in system for flexible arrivals
  • Communal kitchen and laundry facilities

Dorm beds from €33, Private rooms from €114
Check Prices On Hostelworld!

4. KEX Hostel

Best Hostels in Reykjavik - KEX Hostel Common Area

KEX Hostel is located in a repurposed biscuit factory in the heart of Reykjavik, providing easy access to the city's top attractions, shops, and nightlife. The decor is an eclectic mix of vintage and industrial elements, featuring reclaimed furniture, quirky antiques, and exposed pipes. This unique style creates a warm and inviting atmosphere with a touch of nostalgia.

The vibe at KEX Hostel is lively and social, making it a favourite among young travellers and backpackers. The hostel regularly hosts events such as live music, film screenings, and themed parties, adding to its vibrant atmosphere. One of the unique features of KEX Hostel is its spacious common areas, including a cosy library and a bustling bar that serves craft beers and local delicacies.

KEX Hostel Dorm Room

The rooms at KEX Hostel range from dormitory-style accommodations to private rooms. Each room is thoughtfully designed to provide comfort and maintain the hostel's unique industrial-chic aesthetic.

The hostel offers a variety of amenities and services to enhance the guest experience. These include free Wi-Fi, a communal kitchen and laundry facilities. The staff is friendly and knowledgeable, always ready to help with travel tips and recommendations.

A quick overview of KEX Hostel

  • Central location in Reykjavik
  • Eclectic vintage and industrial decor
  • Spacious common areas, including a library and bar
  • Regularly hosted events such as live music and film screenings

Dorm beds from €31, Private rooms from €120
Check Prices On Hostelworld!

5. Reykjavik - Dalur HI Eco Hostel

Reykjavik Hostels - Reykjavik Dalur HI Eco Hostel Common Area

Reykjavik - Dalur HI Eco Hostel is situated in a peaceful area of Reykjavik, just a short walk from the city's bustling centre. This location offers the perfect balance between tranquil surroundings and easy access to Reykjavik's main attractions. The hostel's decor is a blend of modern and eco-friendly design, with natural materials and sustainable practices evident throughout.

The vibe at Dalur HI Eco Hostel is relaxed and welcoming, making it an ideal choice for environmentally conscious travellers. The atmosphere is laid-back, fostering a sense of community among guests. Unique features of this hostel include its beautiful garden and outdoor seating areas, perfect for enjoying Iceland's fresh air.

Reykjavik Hostels - Reykjavik Dalur HI Eco Hostel Dorm Room

The rooms at Dalur HI Eco Hostel are clean and comfortable, with options ranging from dormitory beds to private rooms. Each room is designed with simplicity and sustainability in mind.

The hostel offers a variety of amenities and services to ensure a pleasant stay. These include free Wi-Fi, a well-equipped communal kitchen, laundry facilities, and cosy common areas. The staff is friendly and always ready to help with travel tips and local information.

A quick overview of Reykjavik - Dalur HI Eco Hostel

  • Peaceful location near Reykjavik's city centre
  • Modern, eco-friendly design
  • Beautiful garden and outdoor seating areas
  • Well-equipped communal kitchen
  • Friendly and knowledgeable staff

Dorm beds from €42, Private rooms from €120
Check Prices On Hostelworld!

6. Bus Hostel Reykjavik

Reykjavik Hostels - Bus Hostel Reykjavik Common Area

Bus Hostel Reykjavik is conveniently located near the BSI Bus Terminal, making it an ideal base for exploring both the city and the surrounding countryside. The hostel’s decor is quirky and colourful, featuring fun and eclectic furnishings that create a lively and cheerful atmosphere. The vibe at Bus Hostel Reykjavik is friendly and relaxed, attracting a diverse crowd of travellers from around the world.

The atmosphere is social and vibrant, making it a great place to meet fellow adventurers. One of the unique features of this hostel is its travel-themed common areas, including a cosy lounge and a bar decorated with vintage travel posters and maps.

Reykjavik Hostels - Bus Hostel Reykjavik Dorm Room

The rooms at Bus Hostel Reykjavik include mixed and female-only dormitories, as well as private rooms. Each room is clean, comfortable, and designed to ensure a pleasant stay.

The hostel offers a range of amenities and services to enhance the guest experience. These include free Wi-Fi, a fully equipped communal kitchen, laundry facilities, and a lively on-site bar. The staff is friendly and always available to assist with travel tips and local recommendations.

A quick overview of Bus Hostel Reykjavik

  • Convenient location near BSI Bus Terminal
  • Quirky and colourful decor
  • Travel-themed common areas
  • Free Wi-Fi throughout the hostel
  • Fully equipped communal kitchen
  • Friendly and helpful staff

Dorm beds from €39, Private rooms from €111
Check Prices On Hostelworld!

7. Laekur Hostel

Reykjavik Hostels - Laekur Hostel Common Room

Laekur Hostel is located in a charming residential neighbourhood, just a short walk from Reykjavik’s city centre. This location provides a quiet retreat while still being close to the main attractions, shops, and restaurants. The decor at Laekur Hostel is Scandinavian-inspired, featuring clean lines, minimalist design, and cosy touches that create a warm and inviting atmosphere.

The vibe is laid-back and friendly, perfect for travellers looking for a peaceful place to relax and unwind. The atmosphere is homely, fostering a sense of community among guests. One of the unique features of Laekur Hostel is its lovely terrace, where guests can enjoy the fresh Icelandic air.

Reykjavik Hostels - Laekur Hostel Dorm Room

The rooms at Laekur Hostel are simple yet comfortable, offering a range of dormitory-style style accommodations. Each room is designed to be functional and cosy, ensuring a restful stay.

The hostel offers a variety of amenities and services to enhance the guest experience, including free Wi-Fi, a communal kitchen, laundry facilities, and a cosy lounge area. The staff is friendly and always ready to help with travel tips and local information.

A quick overview of Laekur Hostel

  • Quiet location in a residential neighbourhood
  • Scandinavian-inspired decor
  • A cosy and inviting atmosphere
  • Lovely terrace for relaxation

Dorm beds from €52
Check Prices On Hostelworld!

Final Thoughts on the Best Hostels in Reykjavik

Reykjavik, Iceland's lively capital, is a blend of rich culture, colourful architecture, and stunning natural landscapes. For budget-conscious travellers, staying at the best hostels in Reykjavik offers a perfect mix of affordability, comfort, and a unique Icelandic experience. These hostels not only provide a place to rest but also foster a sense of community, making them an ideal choice for solo adventurers and groups alike.

One of Reykjavik's main attractions is the iconic Hallgrímskirkja church, standing tall and offering breathtaking views of the city from its tower. Harpa Concert Hall, with its impressive glass facade, hosts a variety of cultural events and is a must-visit for architecture enthusiasts. The National Museum of Iceland provides insights into the country's fascinating history, while the scenic waterfront is perfect for leisurely walks, featuring the striking Sun Voyager sculpture. Reykjavik also serves as a gateway to natural wonders like the Blue Lagoon, the Golden Circle, and the mesmerizing Northern Lights, making it a prime location for travellers looking to explore Iceland's beauty.

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