K
Social & central
Kex Reykjavik Hostel
Reykjavik
8.2Great797 reviews
A lively social hostel with a great bar, sea views, and a fully stocked kitchen in central Reykjavik.
FromISK 3,451per night
Hostels · Capital Region · Iceland
Hostels in Reykjavik
We reviewed 19 hotels across Reykjavik's neighborhoods and picked the ones that offer the best value, comfort, and atmosphere for every kind of traveler.
19 hotels
4 rated 8.5+
typical ISK 5,177
hotels
K
Social & central
B
Bus Terminal Base
Bus Hostel Reykjavik
Reykjavik
8Great2,062 reviews
Budget-friendly hostel next to the bus terminal with a sociable lounge, clean dorms, and easy access to tour pick-ups.
FromISK 4,437per night
C
Practical base
Capital-Inn Hostel - Reykjavik
Reykjavik
Free parking, a 20-minute walk to the center, and a geothermal beach nearby — a practical base for exploring Reykjavik.
FromISK 3,328per night
L
Central & Social
Loft - Hi Eco Hostel - Reykjavik
Reykjavik
8.5Great1,548 reviews
A lively, eco-conscious hostel in the city center with live music, karaoke, and a rooftop terrace – excellent value from £39.
FromISK 5,793per night
B
Budget-friendly
B47 Hostel - Reykjavik
Reykjavik
7.1good4,562 reviews
A practical, well-located hostel near the cathedral with dorms, free Wi-Fi, and a garden — ideal for budget travellers.
FromISK 3,328per night
D
Eco-friendly & sociable
Dalur - Hi Eco Hostel - Reykjavik
Reykjavik
8.3Great1,357 reviews
Eco-friendly hostel with free parking, a well-equipped kitchen, and a relaxed, sociable atmosphere — a solid base for exploring Reykjavik without breaking the bank.
FromISK 4,684per night
G
Capsule Beds
Galaxy Pod Hostel - Reykjavik
Reykjavik
8.2Great869 reviews
Sleep in futuristic, private pods steps from Reykjavik's main street – a social stay that's big on value.
FromISK 14,174per night
B
Budget-friendly
B14 Hostel - Reykjavik
Reykjavik
8.5Great3,949 reviews
A modern, clean hostel with free parking, a well-equipped kitchen, and a female-only dorm – ideal for budget travelers wanting a home-like base.
FromISK 7,765per night
B
Great value
Baron'S Hostel - Reykjavik
Reykjavik
8.4Great4,562 reviews
A friendly Reykjavik hostel with free breakfast, a well-equipped shared kitchen, and a central spot for walkers.
FromISK 5,054per night
H
Central & Social
Hlemmur Square - Reykjavik
Reykjavik
8.4Great384 reviews
A lively, central Reykjavik hostel with a 24-hour bar, free coffee in the morning, and a bus stop right outside.
FromISK 2,465per night
L
Great value
Laekur Hostel - Reykjavik
Reykjavik
8.2Great1,357 reviews
Free parking, a proper kitchen, and a social café-bar make this Reykjavik hostel an easy budget pick.
FromISK 7,765per night
H
Central & Social
Hostel B47 - Reykjavik
Reykjavik
8Great3,712 reviews
A clean, friendly hostel in the heart of Reykjavik, steps from the bus terminal and main sights.
FromISK 7,888per night
N
Top Rated
Nordic Hostel - Reykjavik
Reykjavik
9.3Perfect1,226 reviews
Guests rate this Reykjavik hostel 9.3 for its clean rooms, friendly service, and central location near the Icelandic Phallological Museum.
FromISK 8,751per night
S
Sociable & budget-friendly
Student Hotel & Hostel - Reykjavik
Reykjavik
8.4Great1,450 reviews
A lively, well-equipped hostel near the university with shared kitchens, free Wi-Fi, and easy access to the city center.
FromISK 32,047per night
S
Adults-only
Sm Hostel - Reykjavik
Reykjavik
8Great2,062 reviews
An adults-only hostel with a strong guest rating, close to the bus terminal and offering free parking.
FromISK 6,409per night
R
Value Stay
Reykjavik Hostel Village
Reykjavik
7.2good1,232 reviews
Budget-friendly hostel close to Reykjavik's main sights, with free Wi-Fi and parking.
FromISK 5,177per night
R
Old Town value
Refurinn Reykjavik Guesthouse
Reykjavik
8.8Great94 reviews
A 2-star guesthouse that earns its 8.8 rating with a quiet Old Town address, hot showers, and a shared kitchen that saves you money.
FromISK 23,049per night
R
Budget Stay
Retro Hostel - Reykjavik
Reykjavik
7.4good681 reviews
No-frills dorms and twins in Reykjavik, close to Harpa and budget-friendly from £17.
FromISK 2,465per night
1
Central & simple
101 Hostel - Reykjavik
Reykjavik
8.3Great670 reviews
Central budget dorms with a sociable kitchen and daily cleaning on Laugavegur.
FromISK 4,067per night
Map & live prices by our partner
Hostels in Reykjavik: Where to Stay on a Budget
For the best value beds in Reykjavik, look to hostels along Laugavegur and near the BSÍ bus terminal. Hlemmur Square, starting at ISK 2,460, places you centrally with a 24-hour bar and free morning coffee. Retro Hostel offers a no-frills option from ISK 2,460, close to Harpa. Beyond these, the city's hostels range from social hubs like Kex to budget-friendly bases like B47, ensuring a stay that fits your style without breaking the bank.
Top-Rated Hostels in Reykjavik
If you're looking for the highest guest ratings, Nordic Hostel leads with a 9.3 rating, praised for its clean rooms and central location near the Icelandic Phallological Museum. Also standing out are B14 Hostel and Loft - Hi Eco Hostel, both rated 8.5. B14 offers a modern, home-like base with a female-only dorm, while Loft brings a lively, eco-conscious vibe to the city center with a rooftop terrace.
Cheap Hostels in Reykjavik
For the best rates, consider B47 Hostel or Capital-Inn Hostel, both starting at ISK 3,321. Capital-Inn provides free parking and a practical base a 20-minute walk from the center. Hlemmur Square and Retro Hostel offer the lowest starting prices at ISK 2,460, with Hlemmur Square's central location making it a standout value. These options prove you can find a bed in Reykjavik without stretching your budget.
Hostels in Central Reykjavik
Staying central puts you within walking distance of the bars, galleries, and the Harpa concert hall. Loft - Hi Eco Hostel sits right in the city center, offering a social atmosphere with live music and karaoke, from ISK 5,781. 101 Hostel is another central pick on Laugavegur with daily cleaning and a sociable kitchen. For those who want to be in the heart of the action, these options deliver.
Social Hostels in Reykjavik
The social scene in Reykjavik's hostels is strong. Kex is renowned for its lively bar with sea views, while Hlemmur Square keeps the energy going with a 24-hour bar. Loft - Hi Eco Hostel adds live music and karaoke to the mix, and Bus Hostel offers a sociable lounge near the bus terminal. These are your best bets for meeting fellow travelers and enjoying a vibrant atmosphere.
Best Hostels for Solo Travellers in Reykjavik
Solo travelers will appreciate the social and safe environments at hostels like Kex, Loft, and Hlemmur Square, all rated above 8. Kex's bar is a natural meeting point, while Loft's communal spaces and events make it easy to connect. For a more relaxed vibe, Dalur - Hi Eco Hostel offers a friendly, eco-conscious setting. With central locations and communal kitchens, these hostels are ideal for meeting people and exploring the city together.
Hostels with Free Parking in Reykjavik
If you're driving, several hostels offer free parking, a valuable perk in Reykjavik. Capital-Inn Hostel and Dalur - Hi Eco Hostel both include parking, with Dalur providing a well-equipped kitchen and eco-friendly ethos. B14 Hostel and Laekur Hostel also offer free parking alongside their comfortable amenities. SM Hostel rounds out the list with free parking and an adults-only policy, making it easy to explore the city by car.
Hostels near Reykjavik Bus Terminal
Staying near the BSÍ bus terminal is ideal for catching tour pick-ups and day trips. Bus Hostel is adjacent, offering a clean base with a sociable lounge from ISK 4,428. SM Hostel is also close, providing an adults-only option with free parking. Hostel B47 is just steps away, blending convenience with a central location. These hostels make it simple to hop on a bus and explore Iceland's wonders.
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Frequently asked
What is the cheapest month to stay in a hostel in Reykjavik?
While prices fluctuate, the lowest rates typically occur during the winter months (November through February), when tourism is quieter. For example, Retro Hostel and Hlemmur Square have beds from ISK 2,460, but you're more likely to find these rates in the off-season rather than during the summer peak.
Which area is best to stay in Reykjavik for a first visit?
For first-timers, staying central is recommended—around Laugavegur or near Hlemmur Square puts you within walking distance of Hallgrímskirkja, Harpa, and the old harbor. You'll have easy access to restaurants, bars, and main sights without needing a car.
How far is Keflavik Airport from the hostels in Reykjavik?
Keflavik Airport is about 50 km from Reykjavik. The Flybus takes roughly 45 minutes to reach the BSÍ bus terminal, which is near several hostels, including Bus Hostel and Hostel B47. From there, it's a short walk or bus ride to your accommodation.
How far in advance should I book a hostel in Reykjavik?
If you're visiting during the summer (June-August) or for the Northern Lights season (September-April), book as early as possible—several months ahead. Hostels like Kex and Loft fill up quickly. For quieter months, a few weeks' notice is usually sufficient.
Is Reykjavik safe to walk around at night?
Reykjavik is generally very safe, even at night. The city center, where most hostels are located, is well-lit and has a lively atmosphere, especially on weekends. It's a compact city, so walking from your hostel to bars and restaurants is common and should not be a concern.
Hostels in Reykjavik
Reykjavik’s hostel scene is as diverse as the city itself. From the lively, bar-centric Kex in the heart of downtown to the quieter, eco-friendly Dalur near the domestic airport, these hostels cater to every travel style. Many cluster around Laugavegur, the main shopping street, or near the BSÍ bus terminal, making them convenient bases for exploring the city and beyond.
What you get for your money varies widely. At the budget end, you can find dorm beds from around ISK 2,460 at Hlemmur Square or Retro Hostel, while premium boutique stays like Galaxy Pod Hostel (with private capsule beds) or the highly-rated Nordic Hostel push prices above ISK 8,700. Some, like Refurinn Reykjavik Guesthouse, offer a more intimate guesthouse feel with shared kitchens.
The bottom line
Reykjavik's hostels suit the budget-conscious traveler who values social atmosphere and central locations—perfect for those who'd rather spend on experiences, not accommodation. If you need more privacy or a quiet place to work, consider the guest houses or budget hotels on our list. For those seeking a bit more comfort or extra amenities like a full hotel service, check out our Central hotels or Cheap and budget hotels in Reykjavik pages.