Reykjavik’s Budget Bliss: Discover 20 Cozy Hostels
Are you looking for a place to stay in Reykjavik, Iceland, that’s affordable and charming? Hostels offer a great solution for budget-conscious travelers looking for a fun, social atmosphere. Below are 20 of the best hostels in Reykjavik that are highly rated by visitors and offer a unique Icelandic experience. Each hostel is described with an overview, why you should choose it, and the services they provide to ensure a comfortable and memorable stay.
1. Kex Hostel
Kex Hostel is one of Reykjavik’s most famous and stylish hostels, located in an old biscuit factory. It’s a lively, artistic space that offers both dormitory-style and private rooms. Its industrial chic design attracts travelers looking for a unique experience right in the heart of the city.
Why Choose It
Kex Hostel is perfect for travelers who want to be in the center of Reykjavik’s cultural scene. It’s within walking distance to many of the city’s best attractions, bars, and restaurants. The hostel has a laid-back, creative vibe that’s perfect for solo travelers, backpackers, and anyone wanting to meet other adventurers.
Services
- On-site bar and restaurant
- Live music events
- Common kitchen
- Free Wi-Fi
- Bike rentals
2. Loft HI Hostel
Loft HI Hostel is a modern and eco-friendly hostel located on one of the main shopping streets in Reykjavik. With a vibrant atmosphere, this hostel offers stunning views of the city from its rooftop terrace, which is a popular gathering spot for guests.
Why Choose It
Loft Hostel is ideal for travelers looking for a central location and an environmentally friendly stay. The rooftop terrace is a great place to socialize, and its central location makes it easy to explore Reykjavik on foot.
Services
- Rooftop terrace with bar
- Eco-friendly practices
- Daily events and activities
- Free Wi-Fi
- Fully equipped guest kitchen
3. Reykjavik Downtown HI Hostel
Reykjavik Downtown HI Hostel is known for its cozy and quiet environment. Located in a residential area but still close to the main attractions, this hostel provides a relaxing atmosphere for those who prefer a quieter stay.
Why Choose It
If you’re looking for a peaceful escape in Reykjavik while still being close to the city’s vibrant culture, Reykjavik Downtown HI Hostel is a great option. The hostel is small, which makes it easier to meet fellow travelers in a relaxed setting.
Services
- Free breakfast
- Eco-conscious operations
- Quiet common areas
- Free Wi-Fi
- Luggage storage
4. Bus Hostel Reykjavik
Bus Hostel is an affordable and fun hostel that caters to budget travelers. Its quirky décor, featuring vintage furniture and travel memorabilia, gives it a unique and welcoming vibe. It’s also one of the more affordable hostels in Reykjavik, perfect for travelers on a tight budget.
Why Choose It
Bus Hostel is a fantastic choice for those wanting to save on accommodation but still enjoy a social atmosphere. It’s located near the main bus terminal, making it a convenient spot for travelers looking to explore beyond Reykjavik.
Services
- Budget-friendly dorms and private rooms
- Fully stocked bar
- Free Parking
- Free Wi-Fi
- Bike rentals
5. Galaxy Pod Hostel
Galaxy Pod Hostel offers a futuristic twist on traditional hostels with its innovative sleeping pods. This unique concept provides guests with privacy and comfort in a dorm-style setting. Each pod is equipped with lighting control, power outlets, and a privacy curtain.
Why Choose It
This hostel is perfect for travelers who want a unique and futuristic sleeping experience. The pods offer more privacy than typical dorms, making it a great choice for those who want a more personal space while still enjoying the social environment of a hostel.
Services
- Sleeping pods with privacy features
- 24-hour reception
- Free Wi-Fi
- Game room and movie lounge
- Laundry facilities
6. Reykjavik City HI Hostel
Located near the Laugardalslaug geothermal pool and the Reykjavik Botanical Gardens, Reykjavik City HI Hostel offers a tranquil stay just outside the city center. It’s an eco-certified hostel that caters to eco-conscious travelers.
Why Choose It
Reykjavik City HI Hostel is ideal for those who prefer a quieter stay near nature while still having easy access to the city. The proximity to the geothermal pool is a huge plus, especially for travelers who want to soak in the natural hot springs.
Services
- Eco-certified hostel
- Free Parking
- Free Wi-Fi
- Tour booking services
- Large communal kitchen
7. Hlemmur Square
Hlemmur Square is a hybrid hotel-hostel offering both budget dormitory rooms and more upscale private accommodations. It’s housed in a restored 1930s building located in the heart of Reykjavik, making it a chic yet affordable option for travelers.
Why Choose It
Hlemmur Square is a great choice for those who want the flexibility of choosing between a hostel and a hotel experience. It’s in a prime location for exploring Reykjavik’s main attractions, and the in-house bar is a popular hangout spot for guests.
Services
- Hotel and hostel options
- On-site bar and restaurant
- Free Wi-Fi
- 24-hour reception
- Private lockers
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8. The Freezer Hostel
The Freezer Hostel is located just outside Reykjavik in the small town of Rif. It’s a cultural and creative hub offering not just accommodations but also live theater performances, art exhibitions, and workshops, making it an ideal choice for the creative traveler.
Why Choose It
The Freezer Hostel is perfect for those who want a more immersive cultural experience while traveling. The hostel’s focus on arts and culture, combined with its remote location, offers a unique experience for those looking to explore Iceland’s creative side.
Services
- Live performances and events
- Art workshops
- Free Wi-Fi
- Communal kitchen
- Free Parking
9. Reykjavik Loft Apartments
Reykjavik Loft Apartments offers a more private hostel experience with apartment-style accommodations. Each unit is fully furnished and comes with its kitchen, providing a home-away-from-home feeling for guests.
Why Choose It
This is a great option for travelers who want more privacy and autonomy. The fully equipped apartments make it easy to cook your meals and live independently, perfect for longer stays in Reykjavik.
Services
- Fully furnished apartments
- Free Wi-Fi
- Self-catering kitchens
- Laundry services
- Private balconies (in some units)
10. Oddsson Hostel
Oddsson Hostel is a design-forward hostel that mixes affordability with high-end design elements. The hostel offers dormitory-style and private rooms, with a sleek, modern aesthetic and plenty of communal spaces for guests to relax and socialize.
Why Choose It
Oddsson is ideal for travelers who appreciate style and design. The modern, minimalist décor provides a chic backdrop for your stay, and the communal spaces encourage interaction with fellow travelers.
Services
- Private and shared rooms
- On-site restaurant and bar
- Free Wi-Fi
- Yoga classes
- 24-hour reception
11. B47 Hostel
B47 Hostel is a self-service hostel located near Hallgrimskirkja, one of Reykjavik’s most iconic landmarks. This convenient location and its high-tech check-in system make it a favorite among tech-savvy travelers looking for a hassle-free stay.
Why Choose It
B47 Hostel is perfect for travelers who want to stay near Reykjavik’s main attractions without the hassle of dealing with front-desk operations. Its self-service model is ideal for independent travelers.
Services
- Self-service check-in
- Free Wi-Fi
- Luggage storage
- Common lounge
- Free Parking
12. Start Hostel Reykjavik
Start Hostel is located close to Keflavik International Airport, making it a great stopover point for travelers arriving or departing Iceland. The hostel is spacious, and clean, and offers both dormitory and private rooms.
Why Choose It
Start Hostel is perfect for travelers with early flights or late arrivals. It’s close to the airport, and the staff are accommodating when it comes to airport transfers and early check-ins or late check-outs.
Services
- Airport shuttle service
- Free Wi-Fi
- Free Parking
- Breakfast included
- 24-hour reception
13. Vibrant Reykjavik Hostel
Vibrant Reykjavik Hostel lives up to its name, offering a colorful and energetic space for travelers. Located in a central yet peaceful area, it’s a smaller, family-run hostel known for its welcoming atmosphere.
Why Choose It
If you’re seeking a hostel that feels like a home, Vibrant Reykjavik Hostel is a top choice. The hostel’s small size fosters a friendly environment where you can easily connect with other guests.
Services
- Free breakfast
- Communal kitchen
- Free Wi-Fi
- Garden area
- Luggage storage
14. Akureyri Backpackers (Reykjavik branch)
Akureyri Backpackers is a popular hostel chain in Iceland, and its Reykjavik branch is no different. The hostel provides a friendly, relaxed atmosphere and is conveniently located near many of the city’s top attractions.
Why Choose It
This is an excellent option for solo travelers and groups alike. The friendly staff and common areas make it easy to meet people, and the hostel offers affordable rates for budget travelers.
Services
- Free Wi-Fi
- On-site bar and restaurant
- Laundry services
- Shared kitchen
- Tour booking services
15. Hafnarfjordur Hostel
Hafnarfjordur Hostel is located in a suburb of Reykjavik, offering a peaceful retreat just outside the city. Surrounded by lava fields and parks, it provides easy access to nature while still being a short drive from the city center.
Why Choose It
For travelers looking to balance city life with Iceland’s stunning nature, Hafnarfjordur Hostel is ideal. It’s quiet, and scenic, and provides easy access to hiking trails and natural attractions.
Services
- Free Parking
- Free Wi-Fi
- Communal kitchen
- BBQ facilities
- Family rooms available
16. Guesthouse Sunna
Guesthouse Sunna is a family-run hostel in Reykjavik’s quiet residential area. The hostel is clean, comfortable, and known for its helpful and friendly staff.
Why Choose It
If you’re looking for a more relaxed, homely stay, Guesthouse Sunna is perfect. The family-run nature of the hostel ensures a welcoming atmosphere, and it’s just a short walk from Hallgrimskirkja.
Services
- Free Wi-Fi
- Free Parking
- Shared and private rooms
- Guest kitchen
- Breakfast available
17. Reykjavik Treasure B&B
Reykjavik Treasure B&B combines the charm of a bed and breakfast with the affordability of a hostel. It’s located in a beautifully restored house in central Reykjavik, offering a cozy and intimate stay.
Why Choose It
This hostel is ideal for travelers who prefer the warmth of a bed and breakfast but still want the social atmosphere of a hostel. The central location makes it easy to explore the city.
Services
- Free breakfast
- Free Wi-Fi
- Cozy common areas
- Luggage storage
- Daily housekeeping
18. Student Hostel
Student Hostel is located near the University of Iceland, making it a popular choice for students and young travelers. The hostel offers basic but clean accommodations and a quiet, studious atmosphere.
Why Choose It
For students or travelers who prefer a quieter, more academic environment, Student Hostel is a great option. It’s also close to Reykjavik’s cultural and historical sites, making it easy to explore the city in your downtime.
Services
- Free Wi-Fi
- Shared kitchen
- Laundry facilities
- Study areas
- Quiet hours
19. Laugabjarg Guesthouse
Laugabjarg Guesthouse is located near the Laugardalslaug geothermal pool, offering a peaceful and relaxing stay outside the city center. It’s a simple, affordable guesthouse with easy access to Reykjavik’s natural attractions.
Why Choose It
If you’re looking for a place that’s off the beaten path and close to nature, Laugabjarg Guesthouse is ideal. The nearby geothermal pool and botanical garden provide a perfect retreat from the hustle and bustle of the city.
Services
- Free Wi-Fi
- Free Parking
- Access to a geothermal pool
- Communal kitchen
- Luggage storage
20. Igdlo Guesthouse
Igdlo Guesthouse is a family-run hostel located near Reykjavik’s bus station, making it a convenient base for travelers exploring the city and beyond. The hostel is known for its cleanliness and friendly service.
Why Choose It
Igdlo Guesthouse is perfect for travelers who want a clean, quiet, and affordable stay near the city’s main transportation hub. The friendly staff are always ready to help with travel tips and recommendations.
Services
- Free Wi-Fi
- Free Parking
- Family rooms available
- Laundry services
- Shared kitchen
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Final Words
These hostels offer a wide range of options for travelers looking to explore Reykjavik without breaking the bank. Whether you’re looking for a quiet retreat, a social atmosphere, or a unique experience, you’ll find the perfect place to stay among these highly-rated hostels.
