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Iceland is a dazzling country that hosts more than six times its population every year. Tourists from all over the world visit this country to set their eyes on some of the most breathtaking landscapes in the entire world. Due to a high demand, the hotels here are very expensive and unaffordable, especially if you are travelling on a low budget. Thus, we have provided a list of hostels in Iceland.

10 Best hostels in Iceland

We’ve compiled a list of the 10 top hostels in Iceland that will help in making your trip plans easier when you decide to travel to this picturesque Nordic island nation:

1. Reykjavik Downtown Hostel

Reykjavik Downtown Hostel

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Situated in a serene, peaceful area near the harbor in downtown Reykjavik offering both, convenience as well as comfort. As it is located near the Hallgrimskirkja Church as well as near Harpa concert hall, you can find people from different walks of life residing under one roof here. With free movie nights and music events on offer throughout the year, this is surely one of the best hostels in Reykjavik, Iceland.

Where: Vesturgata 17, Reykjavik, Iceland.
Starting price: INR 3875/-

Must Read: Iceland In December: 15 Experiences For Having The Best 2022 Winter Vacay Ever!


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2. Start Hostel

Start Hostel

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Consisting of dormitory-style as well as private guest rooms, this modern hostel lets guests have access to the kitchen while they also serve them breakfasts. The airy, comfortable and clean rooms easily freshen up the guests’ mood. This is one of the few hostels in Iceland near the airport, making air travel more convenient and better for the guests.

Where: Lindarbraut 637, Keflavik, Iceland.
Starting price: INR 2925/-

3. Kex Hostel

Kex Hostel

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A social hostel in an old biscuit factory of Reykjavik, Kex offers luxurious yet affordable rooms. With special dorms for females as well as private rooms for families, Kex Hostel in Iceland is amongst the most popular hostels for tourists. There is an amazing café as well as a lounge where the tourists can rest or relax. There is also a bar where most tourists like to spend their time during the night.

Where: Skúlagata 28, Reykjavik, Iceland.
Starting price: INR 2925/-

Suggested Read: Did You Know? You Can Take The World’s Only Active Volcano Tour In Iceland!

4. Akureyri H.I. Hostel

Akureyri H.I. Hostel

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Established in 1967, this is one of the cheap hostels in Iceland that offers various amenities and facilities at a minimum and reasonable cost. Run by a family since its formation, the guests at this hostel are provided with free-Wi-Fi, reading lights as well as a computer if needed. The guests can also barge into the kitchen whenever they want and cook for themselves.

Where: Stórholt 1, Akureyri, Iceland.
Starting price: INR 2340/-

5. Reykjavik City Hostel

Reykjavik City Hostel

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Most of the hostels in Reykjavik, Iceland pander to the introverted, shy tourists due to their quiet and serene environments. But, this fascinating hostel in the heart of Laugardalur Park is completely opposite to those quiet hostels. Iceland’s biggest Pool & Spa, Laugar, is next to this hostel and a place where young tourists end up spending most of their time.

Where: Sundlaugavegur 34, 105 Reykjavík, Iceland.
Starting price: INR 2632/-

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6. Harbour Hostel

Harbour Hostel

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Situated in Stykkisholmur, this hostel boasts of dorms for travelers on a limited budget as well as private rooms for the ones who need privacy. Guests are given access to the kitchen. All the rooms are spacious and airy, and the staff makes sure you are completely satisfied with the service and amenities provided at the hostel so that your experience at this hostel is a memorable one.

Where: Hafnargata 4, Stykkisholmur, Iceland.
Starting price: INR 2632/-


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7. Akureyri Backpackers

Akureyri Backpackers

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One of the most well-furnished hostels, Akureyri Backpackers, as the name suggests, is a go-to hostel for all the backpackers. Along with free wifi access and lockers, the hostel also provides convenience as it is situated in the town center, close to various cafes, restaurants and bars. This is one of the best hostels in Iceland, Ring Road.

Where: Hafnarstraeti 98, Akureyri, Iceland
Starting price: INR 3290/-

Suggested Read: Let Us All Raise A Toast To Iceland’s Beer Spa!

8. Galaxy Pod Hostel

Galaxy Pod Hostel

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Situated in the heart of Reykjavik in Europe, this hostel is very different from other hostels in Iceland. It uses space pods instead of normal bunk beds, and even the lighting and interior is such that makes you feel as if you are in an actual spaceship. There is also a social lounge with alien landscapes. Tourists can meet each other here or even watch movies in a special movie room.

Where: Laugavegur 170, 105 Reykjavík, Iceland.
Starting price: INR 3802/-

9. Loft Hostel

Loft Hostel

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This hostel is located only a few minutes away from the main shopping street, City Pond as well as Harpa Concert Hall. It gives guests one of the most breathtaking views of the city from its large rooftop terrace. There are various movie nights and music events hosted by this hostel, which is one of the prime reasons why so many tourists are attracted to this beautiful hostel.

Where: Bankastraeti 7, Reykjavik, Iceland
Starting price: INR 4606/-

Suggested Read: 10 Things To Do In Iceland You Shouldn’t Miss At Any Cost!

10. The Freezer

The Freezer

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An award-winning and popular hostel, the Freezer is a social hostel wherein you can play board games, exchange books or simply talk to the other tourists staying at the hostels. The guests are also provided free internet access. There is also a theatre at this hostel where guests can enjoy various plays or even live concerts. If you are amongst those who want to relax, there is a bar or lounge where you can unwind.

Where: Hafnargata 16, Rifi, Snaefellsbaer, Iceland
Starting price: INR 3729/-

Further Read: 18 Magical Reasons To Visit Iceland That You Just Can’t Say No To!

Hostels in Iceland equip you with basic amenities while you are on a trip to Iceland, and make sure your trip is a memorable one. Thus, these hostels offer you accommodation at cheap prices, whilst also helping you meet people from different countries, societies and help you in understanding the different cultures of the world. Backpack to Europe and make sure to crash at one of these hostels.


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Category: accommodation, Europe, Iceland

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