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The best hostels in South Iceland

Check out our pick of great hostels in South Iceland

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Review score

Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
Our top picks Lowest price first Star rating and price Top reviewed

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Paradise Cave Hostel & Guesthouse

Hvolsvöllur

Set in Hvolsvöllur, 3.5 km from Seljalandsfoss, Paradise Cave Hostel & Guesthouse offers accommodation with a garden, free private parking, a terrace and a bar. The accommodation provides a shared kitchen and luggage storage space for guests. This was the best place we stayed at in Iceland by far. We had an emergency while driving from one part of Iceland to the next and happened to stay here and if I’d known about it, I would have stayed here for our entire trip to Iceland. The location is perfect - about halfway between Reykjavik and the gorgeous southeast coast (by Reynisfjara, Skogafoss, etc) but far enough from Vik to have great prices. The hotel was clean and comfortable and the staff obviously liked their jobs. They went above and beyond to help us that night and once we were settled, they even offered us freshly made cake. I cannot rate this highly enough. It was truly amazing. The breakfast the next morning was great and we even got some freshly baked croissants still hot from the oven.

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9.1
Superb
1,546 reviews
Price from
£58
per night

Midgard Base Camp

Hvolsvöllur

Midgard Base Camp features a garden, shared lounge, a terrace and restaurant in Hvolsvöllur. A hot tub and a bicycle rental service are available for guests. Providing free WiFi throughout the property, the non-smoking hostel has a sauna and evening entertainment. Very friendly staff there, good location, nice room

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9.2
Superb
1,967 reviews
Price from
£38
per night

Geysir Hestar

Haukadalur

This Icelandic horse farm provides accommodation in Haukadalur Valley, 90 minutes’ drive from Reykjavik. Overlooking Geysir, it offers a guest lounge, garden and horse riding tours.

Some of Geysir Hestar’s accommodation options feature a kitchen and a seating area with sofa. Toilets and showers are either private or shared. It was really cozy, you could feel the owner and employees love for the place. Very clean, and all the rolls of small, clean towels in the bathrooms - a really nice touch=:D. Loved the horseriding too, well behaved horses and amazing landscape on the 2 hour ride alongside the Gullfoss canyon=:D.

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9.1
Superb
595 reviews
Price from
£75
per night

The Barn

Vík

The Barn is located near the village of Vík between the Mýrdalsjölill Glacier and the southern coast of Iceland. This hostel provides free WiFi and complimentary parking on site.

The Barn features a communal kitchen and an information desk. Guests are provided lockers for their personal belongings. A hostel bar is at your disposal. We loved the place, the room and everything in the Barn. The kitchen is fantastic, big clean and well equipped. Not to mention the kindness of the staff.

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8.7
Fabulous
5,562 reviews
Price from
£81
per night

Hvoll Hostel

Kirkjubæjarklaustur

Set 26 km from Kirkjubæjarklaustur in the South Iceland Region, 40 km from Fagrifoss, Hvoll Guesthouse features a barbecue and views of the mountain. Systrafoss twin falls is 24 km away.

All rooms are fitted with a shared bathroom. Hvoll Guesthouse features free WiFi . Amazing hostel. Great facilities with three seperate kitchens for guests to use, equipped with everything you need. Beautifully isolated from the road, close to major points of interest. Excellent value.

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8.1
Very good
2,893 reviews
Price from
£141
per night

Bakki Apartments & Hostel

Eyrarbakki

Bakki Apartments & Hostel offers dorm rooms and self-catering apartments by the sea in Eyrarbakki village. WiFi and parking are free. Reykjavík city centre is a 50-minute drive away.

Bakki Hostel's dormitory rooms have access to shared bathrooms, a guest lounge and a communal kitchen with tea/coffee facilities. Probably the cleanest place around Iceland, and the guy in the reception was amiable and helpful!

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8.8
Fabulous
2,263 reviews
Price from
£45
per night

Skyrhusid HI Hostel

Hali

Set a 10-minute drive from Jökulsárlón Glacier, this farm hostel offers rooms with free Wi-Fi and mountain views. Iceland’s Ring Road is right next to the property.

Guest rooms at Skyrhusid HI Hostel have an in-room wash basin. All have access to shared bathroom facilities. Bed linen and towels are included. This guesthouse was very clean and comfortable. The bedroom and dining room were all well-equipped and spacious. The staffs were also very friendly and helpful for our staying.

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8.9
Fabulous
2,023 reviews
Price from
£170
per night

Héradsskólinn Historic Guesthouse

Laugarvatn

Set in a 1920s former school building, Héradsskolinn offers both private rooms and dorms. All rooms feature bright décor, lake- or mountain views and access to a pool table and TV lounge. Guests can choose between rooms with private or shared bathrooms. There is a snowy mountain view on one side, and a gorgeous lake on the other side of the hotel. There is a thermal spa a short walk from it, and the facility is very practical, warm and clean.

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8.4
Very good
1,341 reviews
Price from
£69
per night

Höfn Hostel

Höfn

Overlooking Höfn harbour and with views towards the Vatnajökull Glacier, this hostel features a guest kitchen and laundry facilities. The staff can help arrange glacier tours and well as boat and snowmobile trips. value price. wide kitchen and public area clean bathroom and kitchen

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8.8
Fabulous
2,130 reviews
Price from
£46
per night

Kanslarinn Hostel

Hella

Situated in Hella, 34 km from Seljalandsfoss, Kanslarinn Hostel features accommodation with a restaurant and free private parking. Free WiFi and a concierge service are available.

At the hostel, rooms are fitted with a desk, a flat-screen TV, a shared bathroom and bed linen. The rooms will provide guests with a wardrobe and a kettle. Beautiful and modern rooms. We were expecting 2 beds in a shared room with shared bathroom. Instead we were provided with a really nice, super-clean modern private room with private bathroom, closet, mini fridge and desk. Really nice breakfast with quite variety of options. The staff was really polite. We enjoyed staying here a lot. .

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8.1
Very good
357 reviews
Price from
£106
per night

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