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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. We received a very warm welcome. The location was excellent for what we needed. Beautiful waterfall just outside the door. The room was spacious, super clean with a comfortable bed. Everything was spotless and we can truly recommend this place.

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9.1
Superb
1,482 reviews
Price from
£36
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. Amazing staff, great rooms and amenities. Tour was also amazing, the best we did in our whole trip. Restaurant was top notch, and great beer selection! Can’t wait to come back

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9.2
Superb
1,950 reviews
Price from
£36
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
581 reviews
Price from
£75
per night

Valkyrie Guesthouse - 1km from SELJALANDSFOSS

Hvolsvöllur

Set in Hvolsvöllur, 2 km from Seljalandsfoss, Valkyrie Guesthouse - 1km from SELJALANDSFOSS offers accommodation with a garden, free private parking, a shared lounge and a terrace. The hostel has a hot tub and a shared kitchen. Beautiful, lovingly furnished and very comfortable guesthouse. The kitchen is well equipped and the owners are friendly and helpful.

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9.7
Exceptional
44 reviews
Price from
£86
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. The best hostel I have ever seen!

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8.7
Fabulous
5,494 reviews
Price from
£70
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 . We were happy with everything :) We wanted to find a place to sleep with a reasonable price away from Vik and we found this one. Clean, comfy bed, 3 kitchens to use, many toilets & baths. Attention, do a grocery shopping before because this place is away from town.

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8.1
Very good
2,845 reviews
Price from
£102
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. Comfortable, warm, nice kitchen and bathroom, great location

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8.8
Fabulous
2,278 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. The property was one of our favourites while doing the ring road. The rooms are very nice and spacious and also have its own sink which is convenient. The kitchen was great because we could basically cook anything and they had complimentary juice and yogurt!

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8.9
Fabulous
2,002 reviews
Price from
£85
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. The staff was amazing. They were prompt, clear, and served with kindness. The building itself was interesting, with antiques everywhere. It was a fun place to stay.

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8.4
Very good
1,327 reviews
Price from
£77
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
2,073 reviews
Price from
£40
per night

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