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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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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 for guests. Beautiful view, clean and amazing staff

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9
Superb
1,533 reviews
Price from
US$71
per night

Located in Hvolsvöllur and with Seljalandsfoss reachable within 22 km, Midgard Base Camp provides concierge services, non-smoking rooms, a shared lounge, free WiFi throughout the property and a terrace. Providing a restaurant, the property also has a garden, as well as a sauna and a hot tub. The accommodation features evening entertainment and a tour desk.

Buffet and continental breakfast options are available at the hostel. I loved the spa facilities; they were incredibly relaxing and well-maintained. The rooms were clean and comfortable, and the staff was very friendly and helpful. The stunning Icelandic landscape added to the overall experience.

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9.1
Superb
2,127 reviews
Price from
US$38
per night

Located in Fludir, 25 km from Geysir, Efra Sel Hostel provides accommodation with a garden, free private parking, a shared lounge and a terrace. The accommodation offers a shared kitchen and free WiFi. We stayed in the guest house and absolutely loved it! The location is very convenient — almost in the center, and only about 1–1.5 hours’ drive to Reykjavik, waterfalls, geysers, and the beach. The place was clean, warm, and very comfortable. It had everything we needed — a hairdryer, straightener, a bean-to-cup coffee machine, a Ninja multi-grill, and a dishwasher. The living room has a stunning panoramic view — the perfect spot to enjoy your morning coffee with the sunshine ☀️ The Wi-Fi is super fast, too. It was also really thoughtful that the hosts provided shower gels, shampoo, conditioner, makeup remover wipes, and even some feminine products — such a nice touch! There’s also a hot tub with warm water, which was a great bonus after a day of exploring.

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9.2
Superb
113 reviews
Price from
US$105
per night

The rooms in the hostel are fitted with a coffee machine. Featuring a shared bathroom with a shower and a hairdryer, rooms at The Coffee House also boast free WiFi. The units will provide guests with a fridge. Such a good and cozy house. It was nicely warm and everything was perfect. The house has everything you might need and the room was so cozy. The location was amazing and since it is in a place in the middle of nowhere, we saw the northern lights so well!

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9
Superb
265 reviews
Price from
US$87
per night

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. Everything, super cozy, clean, everything you need, great location.

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9.2
Superb
674 reviews
Price from
US$81
per night

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. The Barn is really a nice place. The room is very nice and modern. You can see the sunset. The common area of the place has a nice bar and the kitchen area in good standard and practical with a view to the sea. Tea and coffee available in the room, which is really nice.

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8.6
Fabulous
5,954 reviews
Price from
US$60
per night

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 . The dining room was spacious and clean. There were 3 kitchen to use. The room was comfortable and clean. The heater was very strong. Each room had a own hair dryer so you don't have to share with others. The WC was also spacious.

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8.1
Very good
3,254 reviews
Price from
US$144
per night

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. Nice appartment with a nice view on the sea.

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8.9
Fabulous
1,556 reviews
Price from
US$56
per night

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

Guest rooms at Skyrhusid Guesthouse have an in-room wash basin. All have access to shared bathroom facilities. Bed linen and towels are included. The easiness of the welcoming/check-in. We informed we would arrive late and there was no problem at all. The hostel is super cozy, beautifully decorated, with some free food and coffee. Also, the location is amazing, 10/15 minutes away from the glacier lagoon

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8.8
Fabulous
1,598 reviews
Price from
US$171
per night

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. Location, hospitality, friendliness of staff

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8.4
Very good
1,466 reviews
Price from
US$125
per night

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