Best hostels in Iceland

Reykjavik hostels

Reykjavik has the widest hostel choice in Iceland. Most are within walking distance of Laugavegur, the bus station and tour pick-up points. Look for hostels with guest kitchens, luggage storage and organised day trips — they can save you a lot of money on food and tours.

Ring Road and countryside hostels

Hostels outside the capital are smaller and often seasonal. Good options exist in Akureyri, Vík, Höfn, Egilsstaðir and the Westfjords. Many are attached to guesthouses or summer campsites and close from late autumn to early spring.

What to expect

• Prices: dorms in Reykjavik start around ISK 6,000–10,000 per night in low season and rise sharply in summer.
• Private rooms: many hostels offer private doubles that are cheaper than hotels.
• Self-catering: a shared kitchen is the easiest way to cut costs in expensive Iceland.

Booking tips

Book summer beds as early as possible. Rural hostels have very limited capacity and the best ones sell out months ahead. In winter, check whether the hostel is open — many close or switch to guesthouse-only operation.

Find a hostel

Search hostels and budget stays across Reykjavik, the South Coast and the rest of Iceland.