Cheapest hostels in Iceland

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.

Discover the Wilderness Center / ÓByggðasetur Íslands, a budget-friendly hostel located in the remote Óbyggðasetur region, approximately 48 kilometres from Egilsstaðir Airport.
This pet-friendly hostel offers a unique experience with on-site horse riding, fishing opportunities, and an on-site restaurant serving local meals, alongside free WiFi and a relaxing sauna and jacuzzi.

Conveniently located 1.9 kilometres from Nauthólsvík Geothermal Beach and Reykjavík Domestic Airport, this budget-friendly hostel offers easy access to The Pearl, Hallgrímskirkja Church, and Reykjavik Art Museum: Kjarvalsstadir.
This hostel boasts a shared kitchen, a terrace, a bar, and offers opportunities for skiing, making it an affordable choice for exploring Reykjavík.

Offering a unique 'truck' themed stay, The Truck Inn by Ourhotels is situated in Hvítárbakki, Borgarnes, just 500 meters from the Icelandic Settlement Centre, making it a prime and affordable base for exploring western Iceland's historical sites and natural wonders.
This budget-friendly hostel provides included breakfast and a friendly atmosphere, ideal for solo travellers and adventure-seekers looking to witness the Northern Lights, with flexible check-in and check-out times to suit varied travel schedules.

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 Reykjavik's Laugardalur district, this hostel is under a 5-minute drive from Laugavegur, the main shopping street, and the Laugardalslaug geothermal pool.
Offering free Wi-Fi and a shared kitchen, this budget-friendly hostel provides an affordable stay with easy access to local attractions.

Hafaldan Hi Hostel - Harbour Building in Seyðisfjörður is conveniently located in the harbourfront area, offering mountain views and situated 4.2 kilometres from Gufu Waterfall and 29 kilometres from Egilsstaðir Airport.
This budget-friendly hostel provides free WiFi and barbecue facilities, making it an affordable choice for travellers exploring the area.

Offering unobstructed views of the Northern Lights, ÞVerhamar Hostel Room 1 is a budget-friendly hostel located just off Road 1 in Breiðdalsvík, providing excellent access for aurora hunters and travellers alike.
This private room accommodation, ideal for two guests, features a private bathroom and access to shared amenities including a kitchen and living area, with year-round outdoor activities like hiking and fishing readily available nearby.

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.

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 400 metres from the Local History Museum, Saeberg Hi Hostel offers budget-friendly accommodation in the Icelandic countryside, conveniently located 1km off Ring Road 1 midway between Reykjavik and Akureyri.
This hostel provides oceanfront relaxation in a private geothermal hot tub with stunning fjord views, alongside diverse accommodation options and exceptional birdwatching opportunities, making it an ideal seaside stopover.

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.

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.

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 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.

Kanslarinn Hostel in Hella offers a budget-friendly stay conveniently located for exploring the region, situated 34 kilometres from the iconic Seljalandsfoss waterfall.
This hostel provides essential amenities including free WiFi and on-site dining, making it an affordable choice for travellers seeking a comfortable base.

This hostel in Reykjavik is perfectly situated within walking distance of the city centre, offering an affordable base for exploring.
Guests can enjoy a bar, restaurant, and shared kitchen, alongside complimentary Wi-Fi and tour assistance, making it a budget-friendly choice.

Kanslarinn Hostel, a 2-star hotel, is conveniently located in Rangárþing ytra, just a 1-minute drive from Caves of Hella and within reasonable distance of Lava Centre.
This budget-friendly accommodation offers complimentary wireless internet, an onsite restaurant, and free parking, making it an affordable choice for travellers exploring Hella.

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.

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.

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.

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.

Located in Seyðisfjörður village, this hostel is just 98 meters from the local swimming pool and a short walk from the harbour, offering a truly budget-friendly base.
Guests can enjoy a communal kitchen, BBQ area, and leisure facilities including a sauna and spa, with rooms boasting stunning fjord views and free Wi-Fi.

Unparalleled northern lights viewing opportunities are available directly from this hostel, situated just by road 1, offering easy access to Breiðdalsvík town centre and year-round outdoor activities.
This budget-friendly hostel provides a communal kitchen, living room, and multiple shared bathrooms, accommodating up to 2 guests in a private room, with pets welcome and a garden for enjoyment.

Héradsskólinn Historic Guesthouse is situated in Laugarvatn, within the Golden Circle, offering spectacular views of Lake Laugarvatn, Hekla Volcano, and Eyjafjallajökull Glacier, and is conveniently located only 26 kilometres from Thingvellir National Park, 26 kilometres from the Geysir Hot Spring area, and 39 kilometres from Gullfoss Waterfall.
This budget-friendly hostel provides a unique stay in a historic 1920s former school building, featuring free WiFi, a swimming pool, a restaurant, a bar, and easy access to local activities like hiking and fishing, making it an affordable choice for exploring the region.

Conveniently located in Hafnarfjörður, this hostel offers budget-friendly accommodation just a 15-minute drive from the Sky Lagoon and Laugavegur, with Reykjavik City Hall 12.7 kilometres away.
Guests can enjoy free Wi-Fi, on-site parking, and rooms equipped with a refrigerator and microwave, making it an affordable choice for exploring the area.

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.

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.

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.