6 Hip Hostels in Iceland : Unique Accommodation at a Fair Price

Do you have a small budget but still want to spend a night at a place that has its own soul? Here's a list of 6 hip hostels which will make your trip in Iceland unforgettable.

Dominika Kolomazníková
6. March 2018

As the popularity of Iceland increases, many hotels, hotels, guesthouses and apartments have found their place on the market in past years. The possibilities are rich, so how do you pick the best place to stay?

I have chosen six hostels which offer a good quality accommodation for a tiny budget; on top of that, they are so unique that you will not want to leave!

If you're staying in the capital

For those who do not have much time and prefer to enjoy a couple of days in Reykjavík, I have chosen three very cool social hostels which offer much more than just a room to spend a night.

KEX Hostel, Reykjavík

KEX Hostel Reykjavik.

KEX is a social hostel housed in an old biscuit factory in Reykjavík downtown. KEX is based on an organic concept mixing a vintage industrial feel with a chic contemporary style. On top of dorms and rooms, KEX offers a variety of services and facilities. The 1st floor functions as a base camp for many cultural activities going on at KEX, such as festivals, concerts or workshops. A great lounge area, restaurant, bar, information desk and an old school gym named gym&tonic are situated on the 2nd floor.

The interior of KEX hostel Reykjavik.

Numerous pictures on a wall at the KEX hostel's reception. Reykjavik, Iceland.

If you want to plan a group visit and need a place for meetings, gym&tonic serves as a large multicultural hall. For sunny days in Reykjavík, there is even an amazing outdoor heated patio! Every morning, the KEX pub serves breakfast, while in the evenings, it offers great selection of beers. Music lovers appreciate live jazz at the KEX restaurant every Tuesday. Next to the reception, on the 2nd floor, Kexland's tour specialists help you to make plans and organize your Iceland adventures.

Book your room here or just take a look at the upcoming events , grab a beer and enjoy incredible atmosphere of KEX!

Loft Hostel, Reykjavík

People sitting outside on a balcony at Loft Hostel, Reykjavik.

Loft Hostel is a low budget stylish hostel based in the heart of Reykjavík. Loft hostel offers more than just accommodation. You can book a tour at their information desk, grab a couple of drinks at the cosy Loft bar or enjoy your coffee outside on their rooftop.

Many events and activities take place at Loft on regular basis, such as yoga classes, vintage clothes markets or speed dating evenings! Book your stay here and keep in touch with Loft community .

The interior at Loft Hostel.

A flea market at Loft Hostel.

Bus Hostel Reykjavik

Interior at Bus Hostel Photo: Bus Hostel Reykjavik

Bus Hostel is a youth hostel, situated in Iceland's capital Reykjavík, not too far from the downtown area. Housed in an old bus station building, Bus Hostel provides a great variety of services mostly for budget travelers. If this is something you are looking for, book a room and get inspired by the unique style of Bus Hostel.

Explore other regions in Iceland: Best Places to Stay in the West, the North and the East of Iceland

You decide to discover more of Icelandic countryside, you hit the road but you realize that it would be nice to have a cosy place to spend a night. No problem! Here are some tips for great hostels in every corner of Iceland.

Go West : The Freezer Hostel, Rif

A women standing in front of a hostel in Snæfellsnes peninsula.

The Freezer Hostel is located in a former fishing factory in a small town Rif, in the west part of Iceland. The Freezer is an artist residency, culture center, social hostel and the smallest professional theater in the world. With its authenticity, the Freezer is considered to be one of the most original places to stay while traveling around Iceland.

The hostel offers stylish dorms for budget travelers, a great lounge area with bar and incredible view on Snæfellsjökull glacier - the main attraction in Snæfellsnes peninsula. When traveling in the west, do not hesitate to step by, say hi, take a look, grab a beer, and I am sure you will love to spend a night at this magical place. During the summer season, the Freezer theater hosts incredible shows and plays on everyday basis! Join an open mic night or go see a movie at the Freezer; bookings are available here .

Go east: Hafaldan Hostel, Seydisfjordur

Hafaldan is a charming hostel located in Seydisfjordur, East Iceland. You can decide to stay in one of the two different houses, Old Hospital or Old Harbour, both placed in old buildings transformed into romantic hostels with contemporary design. Hafaldan Old Hospital is situated in the town’s centre in the historic former hospital building.

The biggest motivation for a visit is a little basement spa which guests can enjoy after a long day of exploring Iceland. Hafaldan Harbour Hostel is also very unique in its style and interior design. One of the best qualities of the hostel is its view right on the fjords. Hafaldan Hostel is ideal for single travelers as well as for families; take a look at their booking information here .

Go north: Akureyri Backpackers Hostel, Akureyri

Akureyri Backpackers is a family run hostel in the heart of Akureyri. It is a friendly low-budget hostel which offers dorms and rooms for individuals or groups visiting Iceland, and many services and facilities such as a restaurant, bar and tour information desk. If you look for a hip accommodation in the north of Iceland, look no further, Akureyri Backpackers is the right place for you! For more information, check their website here .

This article is entirely based on my personal opinion and experience. The hostels that are featured in this article did not offer sponsorship of any kind when the article was written.