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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+
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. Fabulous location, friendly & helpful staff, delicious food, comfy beds, spotlessly clean

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9.1
Superb
1,528 reviews
Price from
€ 68.18
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. Facillities to dry your shoes and clothes and also to wash (washing and drier are paid services, the drying closet is free) Bonus free hottub and sauns on the roof. Great location.

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9.2
Superb
1,963 reviews
Price from
€ 45.36
per night

The Coffee House

Selfoss

The rooms in the hostel are equipped with a coffee machine. With a shared bathroom fitted with a shower and a hairdryer, rooms at The Coffee House also boast free WiFi. At the accommodation rooms are fitted with bed linen and towels. The bedrooms were small and cozy, just perfect for the single bed I had. The common space was comfy, well lit, and had a kitchen stocked with dishes. The whole facility was very clean, bathroom too. The owners were very friendly and welcoming, even let the guests say hello to their horses. Overall a great experience and I would highly recommend to anyone looking for a small, cozy stay at a farm.

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9
Superb
376 reviews
Price from
€ 60
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 staff was nice and warm and all the facilities are good. Location is great.

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9.2
Superb
590 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. Loved the casual, social environment they have at their bar and lounge area. The rooms are comfortable and pretty nice with a modern design. The bathrooms, while shared, were kept decently clean. The place is popular among young backpackers. The hostel is just minutes from the black sand beach in Vik.

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8.7
Fabulous
5,550 reviews
Price from
€ 104
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 . It was in the middle of nowhere with great views, exactly what we wanted. The host was very chill. We saw the northern lights!!! We had everything we needed! 10/10

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8.1
Very good
2,876 reviews
Price from
€ 155.16
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. Big apartment with a friendly staff - I can highly recommend staying at Bakki!

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8.8
Fabulous
2,261 reviews
Price from
€ 48
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. This guesthouse was very clean and comfortable. The bedroom and dining room were all well-equipped and spacious. The staffs were also very friendly and helpful for our staying.

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8.9
Fabulous
2,019 reviews
Price from
€ 175
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. Very good place, just go and see :) Reccomended by Homeless Pelican <3

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8.4
Very good
1,336 reviews
Price from
€ 162
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. value price. wide kitchen and public area clean bathroom and kitchen

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8.8
Fabulous
2,121 reviews
Price from
€ 54
per night

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