You don’t have to stay in an overpriced hotel in Iceland while visiting the country to take in its majestic vistas and pristine landscape. Instead, opt to stay in one of the best hostels in Iceland instead. These are the top 10 picks for budget travelers visiting Iceland on a budget that is sure to make your visit unforgettable without draining your wallet or stressing you out over accommodations.
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1) Reykjavik Downtown Hostel
Reykjavik Downtown Hostel is one of the top hostels in Iceland for budget travelers. Located just a few minutes walk from the city center, this hostel offers comfortable, clean accommodations and friendly staff.
The rooms are spacious and well-equipped with modern amenities like free Wi-Fi, laundry services, and a fully-stocked kitchen. The hostel also has an outdoor terrace where guests can enjoy the stunning views of Reykjavik.
The staff is helpful and knowledgeable about the city and its attractions, providing helpful advice on where to go and what to do. Prices are also very affordable, making it one of the best budget accommodation options in Reykjavik.
2) Aurora Reykjavik
When traveling on a budget, one of the best options for accommodation in Iceland is to stay in a hostel. Hostels offer great value for money and can be an excellent way to meet fellow travelers.
One of the top picks for budget travelers to Iceland is Aurora Reykjavik. Located in the heart of Reykjavik, this centrally located hostel offers all the amenities you need for a comfortable stay. From private rooms to dorms, Aurora Reykjavik has it all. The hostel also has a cozy living area, kitchen facilities, and laundry facilities. The staff are friendly and always willing to help out with any questions you might have.
Aurora Reykjavik is one of the few hostels in Iceland that offer a 24-hour front desk service, so you can always find someone to answer any queries you may have. In addition, the hostel provides free Wi-Fi throughout, making it easy to stay connected during your stay. Plus, the property also offers bike rentals so you can explore the city without having to worry about transportation.
For those looking for a good value accommodation option in Reykjavik, Aurora Reykjavik is definitely one of the top picks. With its great facilities, friendly staff, and convenient location, it’s a great choice for budget travelers looking for the perfect base in Reykjavik.
3) Loft Hostel
Loft Hostel is one of the top picks for budget travelers looking to explore Iceland. Located in the heart of Reykjavik, Loft Hostel offers comfortable, modern accommodations in a great location at an affordable price.
The hostel has both private and shared rooms with the latest amenities such as free Wi-Fi and hot showers.
The hostel has a laid-back atmosphere with plenty of common areas to meet fellow travelers. There’s a cozy lounge where you can relax with a book or movie and a fully equipped kitchen where you can whip up some Icelandic cuisine. The staff at Loft Hostel are incredibly helpful and friendly, always willing to offer advice on what to do in the area.
The hostel is within walking distance of the city center and all the attractions that Reykjavik has to offer.
You’ll be close to museums, restaurants, bars, shops, and more. Plus, Loft Hostel has its own bar and a great rooftop terrace with stunning views of the city. It’s the perfect place for budget travelers looking for an enjoyable stay in Iceland!
4) CenterHotel Thingholt
CenterHotel Thingholt is one of the best hostels in Iceland for budget travelers. Located in the heart of Reykjavik, this hostel is just a short walk from downtown attractions like Hallgrímskirkja Church and The National Museum of Iceland.
The hostel offers private rooms and shared dorms, as well as a communal kitchen and lounge area for guests to relax in. Other amenities include free Wi-Fi, a 24-hour front desk, and a continental breakfast.
With its great location and comfortable accommodations, Center Hotel Thingholt is an ideal choice for travelers looking for an affordable place to stay in Iceland.
5) KEX Hostel
KEX Hostel is one of the most popular hostels in Iceland, located in the heart of Reykjavik and near all the city’s must-see attractions. It offers a unique atmosphere, with a bar, restaurant, and rooftop terrace with incredible views of the capital.
KEX has a selection of cozy dorm beds, private rooms, and family rooms. It also has a kitchen for guests to cook their own meals, plus free WiFi and breakfast. With its central location, excellent facilities, and friendly staff, KEX Hostel is an ideal choice for budget travelers looking for the perfect Icelandic experience.
6) Alda Hotel
Alda Hotel is an excellent choice for budget travelers looking to explore Iceland. This quaint hostel is located in the heart of downtown Reykjavik and offers a cozy atmosphere that makes it easy to relax and enjoy your stay.
The rooms are simple yet comfortable, with a fully-equipped kitchenette, free Wi-Fi, and private bathrooms. Alda also offers plenty of amenities, including a sauna and hot tub, bike rental, and a 24-hour reception desk.
Best of all, the hostel is within walking distance of all the popular attractions in Reykjavik, making it an ideal base for your Icelandic adventure.
7) Oddsson
If you’re looking for a budget-friendly option in Iceland, Oddsson is an excellent choice. Located in the center of Reykjavik, Oddsson offers a variety of dormitory-style accommodation options to meet any budget. Plus, this hostel is well-known for its cozy atmosphere and friendly staff.
Oddsson’s location is ideal if you’re looking to explore Reykjavik and its surrounding areas. You can easily walk to nearby attractions such as the National Museum of Iceland and the Harpa Concert Hall. Plus, the central bus station is only a few minutes away, giving you access to other parts of the country.
For budget travelers, Oddsson has plenty of amenities to make your stay comfortable. Each room has a single bed, a desk and chair, and Wi-Fi access. Plus, you can make use of their shared kitchen, lounge area, and communal laundry room. And if you need help with planning activities or sightseeing excursions, the hostel’s friendly staff can provide valuable advice.
Whether you’re traveling alone or with friends, Oddsson is a great choice for budget travelers visiting Iceland. With its great amenities, convenient location, and friendly staff, it’s no surprise that this hostel is so popular.
8) Hlemmur Square
Hlemmur Square is a great hostel for budget travelers in Iceland. Located in the heart of Reykjavik, this hostel offers comfortable and affordable accommodation.
Whether you are looking for a single room or a group of dorm rooms, Hlemmur Square has something to offer. The hostel provides all the necessary amenities, including bedding, towels, Wi-Fi, and laundry facilities.
Guests can also take advantage of the on-site bar, lounge area, and breakfast buffet. Hlemmur Square is one of the best hostels in Iceland and definitely worth checking out.
9) Volcano House
If you’re looking for a unique and truly unforgettable stay in Iceland, look no further than the Volcano House. Located near the town of Grindavik, this hostel is nestled in an area that was formed by volcanic eruptions thousands of years ago, offering an experience like no other. As one of the few hostels located on the Reykjanes peninsula, Volcano House offers amazing views of the volcanoes and surrounding landscape and features comfortable accommodations for both solo and group travelers.
What makes Volcano House such a great choice for budget travelers is its unbeatable value for money. The hostel offers both private and dormitory rooms, with rates as low as $30 per night. Additionally, all guests have access to a shared kitchen, lounge area, and laundry facilities. The hostel also has a bar where you can enjoy local craft beers or a cup of hot chocolate while you relax.
But perhaps the best thing about Volcano House is its location. You can easily explore the nearby beaches and lava fields, or venture into the interior of the Reykjanes Peninsula to explore the unique geothermal pools and volcanoes. With its unbeatable views, convenient location, and great value, Volcano House is undoubtedly one of the best hostels in Iceland for budget travelers.
10) Guesthouse Sunna
For budget travelers looking for the best hostels in Iceland, Guesthouse Sunna is a great option. Located in the vibrant capital of Reykjavik, this hostel is just a few minutes away from the city center and offers comfortable accommodations at an affordable price.
The rooms at Guesthouse Sunna are simple and cozy, and each one comes with a private bathroom. The dormitory-style rooms are great for larger groups, and all of the beds have high-quality mattresses and comfortable linens. There’s also a kitchen where you can prepare your own meals if you wish.
The staff at Guesthouse Sunna are friendly and helpful, making sure that all guests are comfortable. They also offer various services such as airport shuttles, bike rentals, and sightseeing tours. This hostel also offers free Wi-Fi so you can stay connected during your stay.
Overall, Guesthouse Sunna is an excellent choice for budget travelers looking for quality accommodations in Iceland. With its convenient location and friendly staff, you’ll be sure to have a pleasant and memorable stay.
