Cheapest hostels in Iceland

Boasting prime views of Höfn Harbour and Vatnajökull Glacier, this hostel is situated in Höfn, just 80 kilometres from Jökulsárlón Glacier Lagoon and 130 kilometres from Skaftafell National Park.
This budget-friendly hostel offers a guest kitchen, BBQ area, and laundry facilities, providing an affordable base for exploring the region with staff ready to assist with booking glacier tours and other excursions.

Located in Hvolsvöllur, this hostel offers easy access to Seljalandsfoss waterfall, just 21 kilometres away, and Skógafoss waterfall, 50 kilometres distant.
This budget-friendly hostel boasts a swimming pool, hot tub, sauna, and fitness centre, alongside an on-site restaurant and bar, providing excellent value for travellers.

Just 3 minutes on foot from Silfurnes Golf Course, Höfn Hostel offers a budget-friendly stay near the ocean, with scenic views from its terrace and garden, and is less than a 3-minute drive from the Hornafjordur Art Museum.
This hostel provides complimentary Wi-Fi, a shared kitchen, and laundry facilities, ensuring a comfortable and affordable experience for travellers exploring Höfn.

Located in Dalvík, this hostel is 42 kilometres from Hof - Cultural Centre and Conference Hall and 45 kilometres from Akureyri Airport.
Offering a budget-friendly stay, Dalvík Hostel Gimli provides free WiFi, a shared kitchen with a fridge and microwave, and barbecue facilities, with ski equipment rental and access to hiking and skiing areas nearby.

Conveniently located 2.7 kilometres from Laugavegur, Reykjavik's main shopping street, and 2.2 kilometres from Laugardalur Swimming Pool, B14 Hostel offers a budget-friendly base for exploring the city.
This hostel provides guests with free WiFi and parking, a communal kitchen equipped with a fridge, microwave oven, and dishwasher, and is within easy walking distance of shops, restaurants, and bars.

Located in Stokkseyri, this hostel is 34 kilometres from Ljosifoss and 64 kilometres from Reykjavík Domestic Airport.
Enjoying a budget-friendly stay, guests can make use of the shared kitchen, bar, and entertainment facilities, with hiking and diving opportunities nearby.

This hostel in Grundarfjörður is conveniently located within a 5-minute walk of the public swimming pools and 3.8 kilometres from Kirkjufellsfoss waterfall, offering a budget-friendly base for exploring the area.
Guests can enjoy complimentary Wi-Fi, a communal kitchen with a microwave and refrigerator, and free on-site parking, making it an affordable and practical choice for travellers.

Centrally located in Reykjavík, this hostel is just 250 meters from Laugavegur shopping street and 0.9 kilometres from Harpa Concert Hall.
This budget-friendly hostel offers a communal kitchen, on-site restaurant and bar, and a heated outdoor terrace, providing a great base for exploring the city affordably.

Conveniently located in Rangárþing ytra, this hostel is a short 1-minute drive from Hella Caves and 6 minutes from Hella Golf Club, offering a budget-friendly base for exploring the region.
This affordable hostel provides complimentary buffet breakfast, free Wi-Fi, and on-site parking, with its restaurant, Kanslarinn, and concierge services ensuring a comfortable stay close to attractions like the Lava Centre (12.2 kilometres) and Saga Centre (13.1 kilometres).

Located within a national park in Snæfellsbær, The Freezer Hostel & Culture Center offers an affordable stay just a 4-minute drive from Hellissandur's Frescoes and 13 minutes from Skarðsvík Beach, making it a great base for exploring this unique region.
This budget-friendly hostel provides a shared kitchen, free Wi-Fi, and a video game room, alongside tour assistance to help you discover the surrounding natural beauty and seaside attractions.

Situated on the Snaefellsnes Peninsula in western Iceland, this hostel is located in Hellissandur, offering countryside vistas and proximity to opportunities for hiking and fishing.
This budget-friendly hostel, formerly a fish processing factory, provides a communal kitchen, on-site bar, and complimentary tickets to weekly summer performances, making it an affordable and unique cultural experience.

Located in Hrífunes, The Fox Hostel is situated approximately 47 kilometres from Fagrifoss, offering a remote and peaceful escape.
This budget-friendly hostel provides free WiFi, complimentary private parking, and opportunities for hiking, making it an affordable choice for exploring the surrounding mountain views.

Conveniently located in the city centre, this hostel offers easy access to Reykjavik's main attractions, with the Hallgrímskirkja church just 1 kilometre away.
This budget-friendly hostel boasts private, app-controlled 'Hubs' with double beds, a communal kitchen with a microwave and dishwasher, and a bar, all managed by 24/7 'CityHosts' for local recommendations and magic wristband access for keyless entry and self-service tap beer.

Located in the Laugardalur district, this hostel is just 1 kilometre from Laugardalur Family Park and 2 kilometres from Central Reykjavík, with local bus stops only 100 metres away.
Offering individually decorated rooms, this budget-friendly hostel provides complimentary WiFi, a garden, and a lounge bar, making it an affordable choice for travellers seeking comfortable and convenient accommodation.

Located a mere 10-kilometre drive from Keflavík International Airport, this hostel provides convenient access to attractions like the Viking World museum.
Offering a budget-friendly stay, the hostel features a shared kitchen, a TV lounge, and a children's playground, with options for private rooms or dormitory facilities.

Centrally located in Akureyri, this hostel is a short walk from HOF – Cultural & Conference Centre, the swimming pool, gym, shops, and whale watching tours, with Akureyri Airport only 3.4 kilometres away.
Offering budget-friendly accommodation, this hostel boasts an exclusive Rooftop Zen SPA with panoramic sea views, a lavish breakfast buffet at its stylish restaurant, and free WiFi throughout the property.

Just 500 meters from Hallgrímskirkja Church, Hostel B47 offers a budget-friendly stay in Reykjavík, with the Solfar Sun Voyager sculpture a 12-minute walk away and the city centre only 800 meters distant.
This hostel boasts a swimming pool and spa facilities, alongside free WiFi and private parking, making it an affordable and convenient base for exploring popular attractions like the Harpa Concert Hall.

Conveniently located in Akureyri, this hostel is just 349 metres from Akureyri Church and Hof Cultural and Conference Centre, offering a budget-friendly base for exploring the city.
This affordable accommodation boasts unique sleeping pods, a shared kitchen, barbecue facilities, and is ideally situated for whale watching and cycling adventures.

Located in Stokkseyri, this unique hostel is set in a former fish factory on the coast, conveniently situated near Route N.1 for easy exploration.
This budget-friendly hostel offers a 24-hour reception, a communal kitchen with a microwave, and a terrace, making it an affordable and practical base for exploring the seaside.

Just 500 meters from Hallgrímskirkja Church, this private room in a hostel offers a prime central Reykjavík location, only a 5-minute walk to both Hlemmur and BSI bus stations, making it an affordable base for exploring the city.
This budget-friendly accommodation provides a comfortable 160x200cm bed for two guests, free Wi-Fi, ample storage, and access to a well-equipped communal kitchen and tiled bathrooms for a hotel-like stay.

Conveniently located in Egilsstaðir, Tehúsið Hostel & Guesthouse is situated 33.8 kilometres from Hengifoss and 24.1 kilometres from Gufu Waterfall, with Egilsstaðir Airport just 1.9 kilometres away.
This hostel offers a budget-friendly stay with a shared kitchen, free Wi-Fi, and on-site parking, making it an affordable choice for exploring the region.

Perfectly situated in the heart of downtown Reykjavík, Loft - Hi Eco Hostel is just 500 meters from the main shopping street, Laugavegur, and a short walk to the Harpa Concert Hall and Hallgrímskirkja Church, offering an excellent base for exploring the city's attractions.
This budget-friendly hostel provides a rooftop terrace with city views, free WiFi, a bar, and hosts weekly social events, making it an ideal and affordable choice for travellers seeking a social and convenient stay.

Located in Reykjavik's Laugardalur district, Lækur Hostel is conveniently situated within a 10-minute walk of Laugardalslaug Geothermal Pool and the Sigurjon Olafsson Museum, with Laugavegur, the main shopping street, just 1.3 kilometres away.
This budget-friendly hostel offers a great base with on-site parking, a restaurant, and a bar, making it an affordable choice for exploring the city.

Adjacent to the geothermally heated Laugardalslaug Swimming Pool, this eco-certified hostel is located 3.5 kilometres from Reykjavík's city centre.
Offering a budget-friendly stay, this hostel provides free WiFi, communal kitchens with microwaves and fridges, and on-site dining featuring organic and local meals, with a terrace bar and barbecue facilities perfect for exploring the local area.

Framtid Hostel in Djúpivogur offers affordable seaside accommodation, located just 85 kilometres from Egilsstaðir Airport, providing a budget-friendly base for exploring this coastal village.
Guests can enjoy sea views, private entrances, and fully equipped kitchens, alongside an on-site restaurant and bar for a comfortable and convenient stay.

Just a 19-minute walk from Nauthólsvík Geothermal Beach and Laugavegur Shopping Street, SM Hostel in Reykjavík offers a budget-friendly stay conveniently located 2.4 kilometres from Solfar Sun Voyager.
This hostel provides a shared kitchen, garden, and free WiFi, making it an affordable option for exploring Reykjavík's attractions like The Pearl and Hallgrímskirkja Church.

Located on Karlsstad farm in Berufjordur, this farm offers a secluded natural setting in Iceland's East Fjords, close to Djupivogur and Breiddalsvik.
This budget-friendly farm provides an immersive experience in the natural landscape, boasting amazing views and featuring family rooms and double bedrooms with shared bathrooms.

Situated by the sea in Eyrarbakki, Bakki Apartments & Hostel is a mere 8-minute walk from the Eyrarbakki Museum and 80 kilometres from Reykjavík city centre.
This budget-friendly hostel offers both self-catering apartments and shared dormitory rooms, with free WiFi and parking, making it an affordable choice for exploring the Icelandic coast.