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The 10 Best South Iceland Hostels – Hostels in South Iceland, Iceland

Check out our selection of great hostels in South Iceland

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Review Score

Wonderful: 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. Amazing! The staff were so kind and nice, the rooms were clean and there was even cake! I'm definitely coming back :)

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9.1
Wonderful
1,457 reviews
Price from
$48
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. This place is amazing. Very comfy. The sauna and hot tub are on the roof. The restaurant is open a little later than local places so we had some dinner after a long day of exploring. They also do daily excursions one can purchase, however we had a rental and were self touring.

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9.2
Wonderful
1,915 reviews
Price from
$42
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. The common space is homey, everything is clean. Location is good if you’re planning to go around Thingavellir/Geysir.

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9.1
Wonderful
573 reviews
Price from
$88
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. Super nice place, like new, great location, kitchen, bathrooms, comfortable beds.

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8.7
Excellent
5,408 reviews
Price from
$82
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
2,791 reviews
Price from
$128
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. Helpful reception, good communication. Room close by which was very quiet. Beds were very comfortable and showers were great. Showed the care and attention to detail that made it a great stay

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8.8
Excellent
2,275 reviews
Price from
$43
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 owner of Skyrhusid was one of the highlights of our trip. He made cake for everyone staying there. Gave us some Skyr on the house. He was a delight, and the facilities were awesome as well. When we come back to Iceland I definitely will stop here

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8.9
Excellent
1,980 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. 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
1,312 reviews
Price from
$87
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. One of the most well maintained hostel I have lived in. The host is very friendly and checks on you multiple times. The place is spic and span.

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8.8
Excellent
2,039 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. The Restaurant was amazing 😄 and the staff was very friendly 😊

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8
Very Good
325 reviews
Price from
$99
per night

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