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The best hostels in South Iceland

Check out our pick of great hostels in South Iceland

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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. warm decor, beautiful location and a very friend staff. Really good, unlimited coffee all day long and welcome cake baked by the host. staff was very friendly and it was a really nice place to stay

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9.1
Superb
1,549 reviews
Price from
DKK 508
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
Superb
1,968 reviews
Price from
DKK 470
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. fantastic location, very clean and in very good shape!

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9.2
Superb
598 reviews
Price from
DKK 656
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 common kitchen has a lot of equipment. I really like it. The accommodation near black sand beach.

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8.7
Fabulous
5,581 reviews
Price from
DKK 820
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 . I loved absolutely everything!

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8.1
Very good
2,909 reviews
Price from
DKK 1,233
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. Property was very clean. The bed was super comfortable. 4 showers available to use. The common area was very nicely decorated and comfy. Kitchen was available to use and very large. Small town, that’s close to the end of the golden circle and a nice place to use as a stopping point.

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8.8
Fabulous
2,260 reviews
Price from
DKK 358
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. Nice and cozy place close to Diamond Beach. Very helpful staff.

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8.9
Fabulous
2,023 reviews

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. Oh, the place is amazing! I felt in childhood family summer house, where everyone knows you and treats you well. The history of the guesthouse - you can sense it. Very nice place to stay.

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8.4
Very good
1,344 reviews
Price from
DKK 604
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. Very clean. Well stocked kitchen. Ample bathrooms. Good amenities in the room.

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8.8
Fabulous
2,134 reviews
Price from
DKK 403
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. We got a free upgrade to the hotel, which had an own bathroom, huge room, and very clean. We thouroughly enjoyed our stay.

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8.1
Very good
358 reviews
Price from
DKK 933
per night

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