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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+
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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. The italian staff running this hostel was trying their best to keep the place clean, comfortable and interesting. The shared bathrooms are really clean. The fun facts from Icelandic language on the walls made me laugh! Even the location next to the waterfall gives the place a magical spirit. (Psst, they offer you a free cake upon an arrival!)

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9.1
Superb
1,890 reviews
Price from
£49
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. One of the best hostels we have stayed at. The dorms were well designed and private, very spacious. Everything was very clean and well designed. Liked that they had a small kitchen to cook basic meals. Also loved the spa and sauna on the rooftop. Awesome place.

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9.1
Superb
2,069 reviews
Price from
£34
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. Simply excellent. A great place to stay and nice staff.

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9.1
Superb
669 reviews
Price from
£63
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. Great location. Welcoming staff. Clean.

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8.6
Fabulous
5,834 reviews
Price from
£54
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 . clean nice host kitchen for cooking your own price

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8.1
Very good
3,166 reviews
Price from
£139
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. The place had everything we needed like fridge and stove top and also it was cery clean and the proce was reasonable.

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8.8
Fabulous
2,101 reviews
Price from
£34
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. Couldn’t have asked for a more beautiful location and incredible room/stay. Staff were so welcoming

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8.9
Fabulous
1,911 reviews
Price from
£123
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. Second time I've stayed here, won't be the last. Amazing building. Great breakfast. Quick walk over to Laugarvatn Fontana Spa. Came in late January for the quiet atmosphere. Fabulous interior design. Easy check-in. Fast wi-fi.

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8.4
Very good
1,387 reviews
Price from
£106
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. It’s clean, great facilities (kitchen, parking etc), have good beddings. The place also near the coast which means good for aurora hunting!

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8.8
Fabulous
2,501 reviews
Price from
£40
per night

The Coffee House

Selfoss

The rooms in the hostel are equipped with a coffee machine. With a shared bathroom fitted with a shower and a hairdryer, rooms at The Coffee House also boast free WiFi. At the accommodation rooms are fitted with bed linen and towels. The bedrooms were small and cozy, just perfect for the single bed I had. The common space was comfy, well lit, and had a kitchen stocked with dishes. The whole facility was very clean, bathroom too. The owners were very friendly and welcoming, even let the guests say hello to their horses. Overall a great experience and I would highly recommend to anyone looking for a small, cozy stay at a farm.

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8.9
Fabulous
361 reviews
Price from
£59
per night

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