Here you will find the ultimate list of the BEST HOSTELS IN ICELAND, with reviews, prices, locations, and pictures, all in one spot! You will find the Best Hostels in Reykjavik, the Best Hostels in Akureyri, the Best Hostels in Keflavik, the Best Hostels in Stykkisholmur, and the Best Hostels in Snaefellsbaer.

Be sure to check out these 7 Awesome Things to do in Iceland and The Exciting Solheim Glacier Trek in South Iceland!

Best Hostels in Reykjavik

Reykjavik Downtown Hostel

PRICE: Private from $198/ Dorm from $53

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Vesturgata 17, Reykjavik, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel is steps away from the harbor and is in downtown Reykjavik, situated on a quiet street. It is conveniently located near Harpa concert hall and Hallgrimskirkja church. There is a full kitchen and lounge, and guests have access to a book exchange and a mostly organic buffet breakfast. The free movie nights and music events throughout the year makes this one of the best hostels in Reykjavik, Iceland.

Kex Hostel

PRICE: Private from $212/ Dorm from $40

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Skúlagata 28, Reykjavik, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This is a new social hostel in Reykjavik in an old biscuit factory, conveniently located in the heart of downtown. Theres’s a heated outdoor patio, a cafe, a bar, and a lounge area. They also offer female only and family dorms. The design of this hostel displays salvaged materials and objects that have been found and remodeled to decorate the unique hostel, making it one of the best hostels in Reykjavik, Iceland.

Loft Hostel

PRICE: Private from $313/ Dorm from $63

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Bankastraeti 7, Reykjavik, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel was rated the Best Hostel in Iceland at the 2015 Oscars! It’s steps away from the main shopping street, City Pond and Harpa Concert Hall. There is a large rooftop terrace and cafe overlooking Reykjavik, giving guests one of the best views of the city. Their bar has beer from local Icelandic breweries, treats, and organic breakfasts. They also host movie nights and music events, making this the best hostel in Reykjavik, Iceland.

Galaxy Hostel 

PRICE: Dorm from $52

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Laugavegur 170, 105 Reykjavík, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel has special space pods instead of regular bunk beds, making your stay that much more memorable! It is in the heart of Reykjavik and has a social lounge with alien landscapes and movie room so guests can mingle and meet one another. This is definitely the best hostel in Reykjavik, Iceland.

Reykjavik City Hostel

PRICE: Private from $313/ Dorm from $63

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Sundlaugavegur 34, 105 Reykjavík, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel is in the heart of Laugardalur Park and next door to Laugar, Iceland’s biggest Pool & Spa. There is free wifi, laundry facilities, lounge areas, an outdoor patio and garden, and 30 minutes walking distance from the city center. The facilities of this hostel makes it one of the best hostels in Reykjavik, Iceland.

Best Hostels in Akureyri

Akureyri H.I. Hostel

PRICE: Private from $79/ Dorm from $32

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Stórholt 1, Akureyri, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel is family run and has been open since 1967. Guests have access to the kitchens, dining rooms, free WiFi, reading lights, and a computer if needed, making this one of the best hostels in Akureyri, Iceland.

Akureyri Backpackers

PRICE: Private from $166/ Dorm from $45

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Hafnarstrati 98, Akureyri, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR:  This hostel is conveniently located in the town center near a lot of coffee shops, bars, and restaurants. The friendly staff and convenient location of this hostel makes it one of the best hostels in Akureyri, Iceland.

Best Hostels in Keflavik

Start Hostel

PRICE: Private from $165/ Dorm from $60

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Lindarbraut 637, Keflavik, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel is conveniently located close to the airport, making air travel that much easier for their guests. This hostel is modern, comfortable, clean, and cozy. They serve breakfasts and guests have access to the kitchen, making this one of the best hostels in Keflavik, Iceland.

Best Hostels in Stykkisholmur

Harbour Hostel Stykkisholmur

PRICE: Private from $126/ Dorm from $36

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Hafnargata 4, Stykkisholmur, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This hostel allows guests to use their kitchen to prepare their own meals. Guests can enjoy the free WiFi and the friendly staff which assist guests with any information they may need about the area, making this one of the best hostels in Stykkisholmur, Iceland.

Best Hostels in Snaefellsbaer

The Freezer

PRICE: Dorm from $51

Check the latest price on Hostelworld.

You can also read the recent reviews, here.

LOCATION: Hafnargata 16, Rifi, Snæfellsbær, Snaefellsbaer, Iceland

Why is this one of the best hostel in Iceland?

FAMOUS FOR: This social hostel is award winning and offers guests free wifi, a book exchange, board games, a cozy lounge and self-service bar. They have a theater where guests can see performances or live concerts, making this one of the best hostels in Snaefellsbaer, Iceland.

This list is based on our personal experiences and/or reviews online. Do you own a Backpackers Hostel and want to be featured in our series? If yes, please contact us at [email protected] with SUBJECT: Best Backpackers Hostels List.

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