5 Best PARTY HOSTELS in Iceland! [2022]

Updated - May 16th 2022

Home to some of the most heart-stopping landscapes in the world, tasty restaurants, and dramatic natural sites Iceland has marked itself on the map as being one of the most incredible countries to travel to in Europe.

Despite being primarily known for its breathtaking sites to explore during the day, Iceland is also beaming with an awesome and very unique nightlife scene from hot tub parties in the rural areas, to the heated beer gardens and mega nightclubs in the capital.

Before planning the places you want to party at until the early hours of the morning you need to find an epic party place to stay and Iceland has an awesome selection of these.

That’s why we have created this epic guide to the best party hostels in Iceland to help ease that burden so you can focus on what really matters: exploring Iceland’s incredible sites and extraordinary nightlife!

Quick Answer: The Best Party Hostels in Iceland

#1 Best Overall Party Hostel in Iceland- Reykjavík – Loft HI Hostel
#2 Best Hostel for Solo Travelers in Iceland – KEX Hostel
#3 Best Luxury Party Hostel in Iceland – Galaxy Pod Hostel
#4 Best Budget Party Hostel in Iceland – Bus Hostel Reykjavik
#5 Coolest Party Hostel in Iceland – Midgard Base Camp

#1 – Loft HI Hostel

Best Overall Party Hostel in Iceland

Loft HI Hostel

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Hostel Details:

  • $$$
  • Checkout before 11am
  • Breakfast not included

Party Details

  • Rooftop terrace
  • On-site bar
  • Sociable atmosphere
  • Awesome party location

Why Loft HI Hostel is a Kickass Party Hostel

Loft HI Hostel is an incredible eco-hostel located in one of Reykjavik’s liveliest neighborhoods with the famous Harpa Concert Hall being on its doorstep just a few minutes’ walk from the property. The hostel isn’t just bustling during the night time with the Laugavegur neighborhood having plenty of awesome activities to explore during the daytime.

On-site the hostel offers fantastic party facilities including a stunning rooftop terrace that overlooks the nearby neighborhood which is an awesome place to watch the Icelandic sun go down with a drink or two. The hostel also has a bustling on-site bar which serves up a great selection of backpacker budget-friendly drinks along with hosting a variety of live music events.

Overall Party Hostel Score: 9.5

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#2 – KEX Hostel

Best Hostel for Solo Travelers in Iceland

KEX Hostel

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Hostel Details:

  • $$
  • Checkout before 11am
  • Breakfast not included

Party Details

  • On-site bar and lounge area
  • Bustling central location
  • Heated outdoor patio
  • 24-hour reception

Why KEX Hostel is a Kickass Party Hostel

KEX Hostel is situated inside the walls of an old biscuit factory making it an awesomely unique place to stay for travelers. The hostel has a hipster design that mixes modern with industrial retro which creates a cool and vibrant ambiance.

KEX Hostel is also equipped with the perfect facilities to socialize and meet other guests including its incredible cafe-bar area which hosts a variety of local live bands. It also has a vibrant outdoor patio which is heated meaning you can enjoy drinks in the crisp Icelandic air without being freezing cold. After having a few drinks at the hostel you can carry the night on in the nearby neighborhood where there are plenty of bustling bars and clubs.

Overall Party Hostel Score: 9.0

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#3 – Galaxy Pod Hostel

Best Luxury Party Hostel in Iceland

Galaxy Pod Hostel

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Hostel Details:

  • $$$
  • Checkout before 11am
  • Breakfast not included

Party Details

  • Central location
  • On-site bar
  • Sociable common rooms
  • No curfew

Why Galaxy Pod Hostel is a Kickass Party Hostel

If you’re looking for a hostel with a lively and sociable atmosphere but still want a sense of luxury and privacy then this is the place to stay for you. The hostel offers modernly designed capsule pods which are equipped with comfortable and deluxe beds perfect to relax in after a heavy night in Reykjavik’s incredible nightlife scene.

The hostel also has a cozy on-site bar nestled in its sociable common room which has the perfect view overlooking the nearby neighborhood. Here you can enjoy a few pre-drinks before heading out to explore the surrounding area.

Overall Party Hostel Score: 8.0

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#4 – Bus Hostel Reykjavik

Best Budget Party Hostel in Iceland

Bus Hostel Reykjavik

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Hostel Details:

  • $$
  • Checkout before 10am
  • Breakfast not included

Party Details

  • On-site Buzz Bar
  • Live sport events
  • 24-hour reception
  • Drinks deals

Why Bus Hostel Reykjavik is a Kickass Party Hostel

If you’re wanting to explore some of Iceland’s top sites then you’re in the luck as the hostel is conveniently slotted next to the Reykjavik Bus Terminal which provides easy access to multiple locations across the country. The hostel also provides a variety of tours at discounted rates for its guests including to the famous Blue Lagoon and the staff are more than happy to help you navigate these incredible activities.

The hostel’s on-site Buzz Bar has gained itself a reputation across the neighborhood as being one of the bars with the best social atmosphere with locals and travelers heading to the bar most nights. If you’re a beer connoisseur then you will love that the bar offers a different selection of local beers on tap each week.

Overall Party Hostel Score: 8.5

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#5 – Midgard Base Camp

Best Party Hostel with Bar Access in Iceland

Midgard Base Camp

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Hostel Details:

  • $$
  • Checkout before 10am
  • Breakfast not included

Party Details

  • Lively bar
  • On-site restaurant
  • Hot tubs
  • Outdoor pool and terrace

Why Midgard Base Camp is a Kickass Party Hostel

Midgard Base Camp hostel is an epic and unique hostel located in the South of Iceland in a small town called Hvolsvöllur which is home to only 900 inhabitants. However, don’t let the rural location put you off the hostel is home to an incredible party atmosphere with a lively on-site bar, tasty restaurant, and outdoor terrace which is equipped with a rooftop hot tub with offers some of the most incredible views in the country.

Midgard Base Camp is also an epic place for those nature lovers looking to explore spectacular natural environments with the hostel being surrounded by incredible sites including Seljalandsfoss, Skógafoss, and the black Sand Beach.

Overall Party Hostel Score: 9.25

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Conclusion to the Best Party Hostels in Iceland

Iceland is a truly epic destination both during the day and night whether you want to explore its dramatic natural landscapes or party until the early hours of the morning at one of its energetic nightclubs the country has something for everyone.

Despite the country’s number of hostels being small they are some of the coolest in Europe. If we had to pick one party hostel that truly stands out we’d have to choose LOFT HI Hostel its incredible location in the center of Reykjavik along with fantastic party facilities make it a great place to stay.

We hope this guide has helped you navigate Iceland’s party hostel scene and narrow down a few options for your upcoming trip.

So what are you waiting from get ready to hit those nightclubs, try some local beer and explore some of the most spectacular sites in the world. Your trip to Iceland awaits.

***Disclaimer*** Some of the links in this post are affiliate links. This means that if you book your accommodation through the site, One Weird Globe will earn a small commission at no extra cost to you. Your support helps me keep the site going :)

Aiden Higgins
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