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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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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. Everything, the way they keep the place clean, quality of the beds and dorms, they even have a hot tub and sauna which is awesome.

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9.1
Superb
2,124 reviews
Price from
US$37
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
119 reviews
Price from
US$93
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. This little coffee house is very beautifull. Exactly how shown in the picture. Very clean and very cozy. The host was amazing, we were there during a storm and she was so helpfull ! Would really recommend to stay more than one night to really enjoy the little farm !

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9
Superb
256 reviews
Price from
US$86
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. Great place to stay. Unique interior design, beautiful sunset view

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9.2
Superb
672 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. After a snowy winter drive, this hotel felt like a cozy mountain cabin. Warm and welcoming. The staff also was friendly.

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8.6
Fabulous
5,919 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 . It was all perfect clean and beautiful..!

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8.1
Very good
3,259 reviews

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. We were 2 families of 4 travelling together and booked 2 apartments, that we got right next to each other. Apartments were a lot bigger than we expected to be (shown in the pictures). Kitchen was almost perfectly stocked with all the utensils, kitchenware and basic seasoning (salt, pepper, oil). Kitchen could use a bigger wisp though. And it only missed a good peeler for vegetables. Otherwise it was perfect. I was dual-wielding 2 pans every day to make pan-cakes. Location was selected very carefully. It was a nice hub to stay and popular Icelandic sights are all nearby or mostly hour or so away: Reykjavík, Blue Lagoon, Golden Circle, waterfalls in the east and etc. Not to mention nice walks in local town or nearby black dune beach. Larger grocery stores are only 10 min drive away.

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8.9
Fabulous
1,555 reviews
Price from
US$55
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 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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8.8
Fabulous
1,584 reviews
Price from
US$149
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. The building is beautiful both inside and out, with a unique charm thanks to its history as an old school. The atmosphere has a very cool, distinctive vibe. Our room was on the smaller side, but it was comfortable and cozy. The shared bathrooms were decent and served their purpose. We also opted for breakfast, which featured a wide variety of options—and everything we tried was delicious.

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8.4
Very good
1,459 reviews
Price from
US$83
per night

Overlooking Höfn Harbour and Vatnajökull Glacier, this hostel features a guest kitchen, BBQ area and laundry facilities.

Höfn Hostel offer some rooms with shared bathroom and some with private bathrooms. Some rooms are accessible. Everything was Perfect! We were very safisdied :) Beautiful hostel.

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8.9
Fabulous
2,839 reviews
Price from
US$52
per night

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