The cool Icelandic capital is an upmarket place known for its Nordic design. There’s loads to do in this chilly city from hiking to museums and restaurants – Reykjavik is a small city with a big warm heart.
Iceland is a small and expensive city, and the ideal of travelling there on a budget might seem a little crazy – you might not expect them to have hostels at all!
But the city actually has some pretty amazing hostels that are super stylish places to stay: just take a look at our list of the best hostels in Reykjavik if you don’t believe us!
Some of the coolest hostels in Reykjavik are unbelievably cool… let’s check them out!
Editor’s note – if you are traveling to Iceland you should check out our coolest day trips from Reykjavik!
Quick Answers – The Coolest Hostels in Reykjavik
#1 Best Overall Hostel in Reykjavik – Reykjavik Loft HI Hostel
#2 Best Party Hostel in Reykjavik – Reykjavik Downtown HI Hostel
#3 Best Hostel for Solo Travellers in Reykjavik – KEX Hostel
#4 Best Hostel near Reykjavik Bus Station – Bus Hostel Reykjavik
#5 Best High-end Hostel in Reykjavik – ODDSSON
#6 Best Budget Hostel in Reykjavik – Reykjavik Hostel Village
#7 Best Hostel with a Private Room in Reykjavik – Hlemmur Square
#1 – Reykjavik Loft HI Hostel
Best Overall Hostel in Reykjavik
Reykjavik Loft HI Hostel is the best overall hostel in Reykjavik
Reykjavik Loft HI Hostel is the best overall hostel in Reykjavik
Reykjavik Loft HI Hostel is the best overall hostel in Reykjavik- Cost – $$$
- Location – Bankastraeti 7
- Reviews → Check on Hostel World
Why we like Reykjavik Loft HI Hostel…
The best overall hostel in Reykjavik is a good all-rounder – not only are the staff great, not only is it uber-stylish, not only is it super sociable, but it’s also the best party hostel in Reykjavik, too; the bar here is great for karaoke and happy hours and we really like that about this cool hostel in Reykjavik.
Reykjavik Loft HI Hostel is perfect for…
If you’re here for a good time, then staying at The Loft would be a great option for you – the general atmosphere and events here are fun! The staff are also happy to help you with what you should be getting up to when you’re in Iceland, so for first-timers this place is also a good option.
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#2 – KEX Hostel
Best Hostel for Solo Travellers in Reykjavik
KEX Hostel is the best hostel for solo travellers in Reykjavik
KEX Hostel is the best hostel for solo travellers in Reykjavik
KEX Hostel is the best hostel for solo travellers in Reykjavik- Cost – $$$
- Location – Skúlagata 28
- Reviews → Check on Hostel World
Why we like KEX Hostel…
We absolutely love that this recommended hostel in Reykjavik is set in a former biscuit factory (kex is Icelandic for biscuit); this gives it a lot of character with tons of original features and a decor style that mixes modern with industrial retro, which puts it among the coolest hostels in Reykjavik.
KEX Hostel is perfect for…
If you’re travelling by yourself, you’ll very much enjoy the downstairs bar at this Reykjavik backpackers hostel. Live bands and a great cafe-bar make it the best hostel for solo travellers – plus the staff are helpful and welcoming, which is always a plus when you’re on your own. It goes without saying that design-lovers and hipsters will adore this place.
Looking for the Party? We’ve got you covered with our guide to the best party hostels in Iceland!
#3 – Bus Hostel Reykjavik
Best Hostel near Reykjavik Bus Station
Bus Hostel Reykjavik is the best hostel near Reykjavik Bus Station in Reykjavik
Bus Hostel Reykjavik is the best hostel near Reykjavik Bus Station in Reykjavik
Bus Hostel Reykjavik is the best hostel near Reykjavik Bus Station in Reykjavik- Cost – $$
- Location – Skogarhlid 10
- Reviews → Check on Hostel World
Why we like Bus Hostel Reykjavik…
Being the best hostel near Reykjavik Bus Station (it’s very close-by) puts this place in good stead for those looking to travel onwards in Iceland – or even to get to the airport for a flight home, making it simultaneously the best hostel near Keflavik Airport; we very much like that convenience.
Bus Hostel Reykjavik is perfect for…
If you like the convenience of having a whole slew of travel options on your doorstep courtesy of the nearby BSI bus terminal, then this top hostel in Reykjavik is a great option for you. The bright, breezy style of it combined with retro fittings and fixtures also make this one of the cool hostels in Reykjavik.
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#4 – ODDSSON
Best High-end Hostel in Reykjavik
Why we like ODDSSON…
We’ve seen some cool hostels in our time, but ODDSSON really quite possibly might be the coolest hostel in the world, let alone the coolest hostel in Reykjavik. The ultra-sleek, retro-modern interior design here – complete with sparkling pastel bathrooms – is just the sort of thing that we just can’t help but adore.
ODDSSON is perfect for
Want to stay in a hostel that’s even cooler than a lot of the boutique hotels in Reykjavik? ODDSSON is for you. Not only is it dripping with style and incredibly well matched furnishings, it’s also got a yoga centre and a hot pool on the roof – now how’s that for the best high-end hostel in Reykjavik?
Want to learn more about Reykjavik? These are the most AMAZING tours in Reykjavik!
#5 – Reykjavik Hostel Village
Best Budget Hostel in Reykjavik
Why we like Reykjavik Hostel Village…
We like that this budget hostel in Reykjavik is set in a collection of old houses (hence the name ‘Hostel Village’) – the central building, where most of the action is, is great with its simple, retro design. Plus we love the outside communal areas, which are simply great for summer BBQs!
Reykjavik Hostel Village is perfect for…
Backpackers (or if you’re on a budget). Yes, if you’re looking for the best budget hostel in Reykjavik this place has great value for money: the accommodation is somewhat simple, but the location is great as the most happening area in town – Laugavegur – is just a few minutes’ walk from this top hostel in Reykjavik.
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#6 – Hlemmur Square
Best Hostel with a Private Room in Reykjavik
- Cost – $$$
- Location – Laugavegur 105
- Reviews → Check on Hostel World
Why we like Hlemmur Square…
As with many top hostels in Reykjavik, this one comes complete with cutting-edge, ultra-chic design that easily makes it one of the coolest hostels in Reykjavik. What we love the most about this one though are its private rooms: they’re so good that even businessmen make this hostel their port of call when visiting the city.
Hlemmur Square is perfect for…
As the best hostel with a private room in Reykjavik, this one really features some top quality hotel-like rooms that are just incredible; well laid-out, well decorated, great colour scheme. Design-lovers will enjoy this place – and so will anyone looking for a more hotel-esque experience than a Reykjavik backpackers hostel.
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More Best Hostels in Reykjavik
#7 – 101 Hostel
- Cost – $$
- Location – Laugavegur 58b
- Reviews → Check on Hostel World
Why we like 101 Hostel…
Whilst this top hostel in Reykjavik may not be as cool as other options in the city, it’s still stylish in a simple, minimalist way and the dorms are nice and bright, which we really like. It’s also set on Laugavegur – Reykjavik’s main shopping street – which puts you in the middle of a good neighbourhood.
101 Hostel is perfect for…
If culture is important to you, then staying at 101 Hostel would be a good idea for you. Not only is there some good shopping located nearby, but there’s also the iconic Hallgrimskirkja (the tallest church in the city) and the 80-year-old Sundhöllin swimming pool within a few minutes’ walk.
#8 – Reykjavik City HI Hostel
- Cost – $$
- Location – Sundlaugavegur 34, IS-105 Reykjavik
- Reviews → Check on Hostel World
Why we like Reykjavik City HI Hostel…
We like the social aspect of this simple but nevertheless recommended hostel in Reykjavik. Though not quite as cutting-edge in terms of style as some of the other hostels in the city, it makes up for that with friendly staff and good facilities; plus, this makes it a more ‘traditional’ stay than others, which we enjoy.
Reykjavik City HI Hostel is perfect for…
If you’re looking for more of a youth hostel in Reykjavik than a boutique hotel-type hostel, this iteration of Hostelling International in Reykjavik will suit you very well. It’s a great option for solo travellers because of its communal areas plus fun regular events that get guests together.
#9 – Galaxy Pod Hostel
- Cost – $$
- Location – Laugavegur 172
- Reviews → Check on Hostel World
Why we like Galaxy Pod Hostel…
This top hostel in Reykjavik takes the idea of futuristic Japanese pod-style accommodation and turns it into a hostel. We love the quirkiness and sci-fi feel of this idea – as well as the privacy it affords. We also very much enjoy the cool sitting area for socialising, complete with views over the city.
Galaxy Pod Hostel is perfect for…
If you’re looking for privacy without shelling out on a private room, then you’ll probably like the pods on offer at Galaxy Pod. Likewise if you want something a bit more quirky and different when it comes to a hostel you’ll love this place – it’s like sleeping in a sci-fi movie!
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#10 – Laekur Hostel
- Cost – $$
- Location – Laugarnesvegur 74A
- Reviews → Check on Hostel World
Why we like Laekur Hostel…
This cool hostel in Reykjavik prides itself on its ‘Nordic style rooms’. This means clean, bright, functional but stylish interior design all over the place – and of course we like this a lot. Cosy communal areas make this a great place to get to meet fellow travellers, which is always a plus.
Laekur Hostel is perfect for…
Digital nomads! With several breezy communal spaces to work, plus a very cute cafe downstairs (also run by the hostel), it’s a great place to come and do a spot of remote laptop working. The spaces mean chatting to other guests is easy, too. Plus, if having tasty food on-site is important to you, the brunch special is quite something at the cafe!
#11 – Reykjavik Downtown HI Hostel
- Cost – $$
- Location – Vesturgata 17
- Reviews → Check on Hostel World
Why we like Reykjavik Downtown HI Hostel…
The third and final Hostelling International hostel in Reykjavik, this one is very cool indeed – which, of course, we love. The decor and design are simple and minimalist; the private rooms are extremely good; the communal areas are bright and tastefully decorated. It’s also quiet, meaning chilled evenings and restful sleep.
Reykjavik Downtown HI Hostel is perfect for…
Couples may love this place. The high-quality private rooms are chic in a simple way, meaning you get a secluded, hotel-esque room for a fraction of the price of a hotel. Those looking for a quiet, peaceful stay will also enjoy this top hostel in Reykjavik – laid-back is the atmosphere at this place!
FAQ’s
How Much are Hostels in Reykjavik?
Most dorm rooms are around $30 to $40 per night, though sometimes you can find cheaper options. If you want a private room, you'll need to spend at least $80 on most places and often closer to $150 for a one night stay.
What are Hostels in Reykjavik Like?
Normally comfy, spacious, and with great modern amenities. Hostels are a great way to save money on expensive hotels, which is a plus somewhere like Reykjavik where prices are higher! Many hostels can also help arrange tours and travel to other parts of Iceland.
How Safe are Hostels in Reykjavik?
Generally very safe! Reykjavik is considered a very secure city even for solo travelers. Most hostels have great security features and it's usually safe to be out alone even at night.
How to Find Hostels in Reykjavik?
Start by looking on HostelWorld to find a list of options and reviews from other travelers. If you're traveling around Iceland, you can ask at your current accommodation for recommendations or ask other travelers you meet about where they stayed!
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Best Overall Hostel in Reykjavik
Reykjavik Loft HI Hostel
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Best Hostel for Solo Travellers in Reykjavik
KEX Hostel
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Best Hostel near Reykjavik Bus Station
Bus Hostel Reykjavik
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Best High-end Hostel in Reykjavik
ODDSSON
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Best Budget Hostel in Reykjavik
Reykjavik Hostel Village
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Best Hostel with a Private Room in Reykjavik
Hlemmur Square
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Conclusion
See, we told you that there were some super cool hostels in Rekjyvk – and they aren’t too expensive, either. All that’s left for you to sort out is which one you are going to choose.
Now you know you can stay in Rekjyvk without breaking the bank, you will be able to really enjoy yourself and explore the city without any worries.
The staff will help you to arrange tours to the beauty of the surrounding nature and you can enjoy time soaking up the stylish city too.
And don’t forget: Reykjavik Loft HI Hostel – our best overall hostel in Reykjavik – is always a great choice if you are still struggling to decide which of these cool hostels is the coolest hostel for you!
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