10 Hostels hotel in Capital Region: Best hotel deals for 2023

June 11, 2023 Diedre Savory

Discover the best Hostels hotel in Capital Region including Kex Hostel, Loft - HI Hostel & Bar, Dalur - HI Hostel, Hostel B47, Guesthouse Andrea, Laekur Guesthouse, Lava Hostel, Bus Hostel, Gest-Inn Guesthouse, Circle Hostel.
Things to do in Capital Region

1. Kex Hostel

Skulagata 28, Reykjavik 101 Iceland
Excellent
49%
Good
34%
Satisfactory
11%
Poor
4%
Terrible
3%
Overall Ratings

4 based on 1014 reviews

Kex Hostel

It' s the Icelandic word for "biscuit" and a social hostel in Reykjavik. What's not to love? Housed in an old biscuit factory in the heart of Reykjavik, KEX is just steps from all the bars, clubs, and music venues that give this city its legendary reputation. It's also a painless distance from late night munchies and a mind-boggling array of coffee houses, shops, and tourist attractions. Of course, you might not even want to venture outside of the hostel with all its features: a cafe and bar, lounge area, heated outdoor patio, tourist information desk, laundry room, and free Wi-Fi. Two guest kitchenettes and private laundry facilities are also available. And with a variety of rooms for up to 214 guests, you'll have no problem meeting interesting, new travel buddies from exotic places. KEX oozes with personality and soul-just like our guests. Every piece of decor has a story to tell. Using salvaged materials and found objects from various sources, KEX is an organic concept blending Iceland' s past with a modern, international twist. The raw industrial spaces and vintage furnishings combine to give it a homey, eclectic feel. With the affordable nightly rates, you'll still have enough cash left over to enjoy a few pints of Viking beer or sample some local delicacies like hakarl and Brennivin. In addition to our dormitory rooms we offer three different double rooms: 1. Double Plus - 1 double bed, 1 private bathroom, linens and towels, and 1 fantastic seaside view. 2. Double Standard - 1 double bed (of the most clever convertible design in case you get tired of being so close to your travel partner), shared bathrooms, linens and towels, and if you are lucky the same fantastic view. 3. Twin - 2 single beds, linens and towels, and a better than average chance of making your friends back home quite jealous indeed. LOCATION: KEX is located in the center of Reykjavik, with a view across the sea to Mt. Esja across the bay. The old factory that houses KEX is also home to The Living Art Museum and studios of various artists, dancers, and fashion designers. KEX is within an easy walking distance to the city's interesting nightlife, restaurants, shopping streets, cultural attractions, and other points of interest in the city center. To reach those places a little further afield, the hostel is well connected to the city's public bus system.

One Night Hostel Stay!

Reviewed By tejshanbhag

Great location right by the action on Laugavegur St, warm staff, and spaces to meet people and lively bar atmosphere! Dorms were comfortable, WC services were sufficient. Stayed the night, stop in Reykjavik to sample the city.

2. Loft - HI Hostel & Bar

Bankastraeti 7, Reykjavik 101 Iceland
Excellent
65%
Good
27%
Satisfactory
6%
Poor
1%
Terrible
2%
Overall Ratings

4.5 based on 509 reviews

Loft - HI Hostel & Bar

The Eco-Certified Hostel, Bar and Venue that brings people together Loft has been voted by our guests as the Best HI Hostel and Best Hostel in Iceland. Location is perfect as local sites and all the great things that make this quirky city are at its doorsteps. The bus stop for airport transfers and excursions is just around the Vírnet. Loft is known by locals for its fabulous rooftop terrace, which holds an award as The best place to sip a brew on a sunny Reykjavik afternoon. Loft Happy Hour, from 16:00 – 20:00 offers a fine selection of local beer. Loft Event Calendar offers live music, bring´n´buy markets, karaoke nights, pub quizzes, and many more. Check the Facebook page out to see what is going on during your stay. At Loft, guests can choose from double, family rooms as well as dormitory options (female and mixed ones). All rooms have a private bathroom and bed linen is included. Facilities include a fully equipped self-catering kitchen, lockers for valuables, and free WIFI throughout. Loft is certified as a fully accessible building. Loft Hostel has conformed to the official Nordic Sustainability Eco-label – Swan. At LOFT, we carbon offset your stay.

The perfect central location if you want to party but not to sleep

Reviewed By Cathy750102014

I usually stay in HI Hostels when I travel (USA, Canada, Norway, New-Zealand...), I renew my membership every year and I can write that it's the first time I've been quite disappointed. Certainly the right location for students who want to party all the night, not for travellers more than 1 night and not the weekends! I was in a 6 women dorms, andY the 2 nights were just terribly noisy. I thought my bed was in front of the Reading Festival stage! The main doors were opened the whole night, and a room mate came back with a guy in the women dorm. For your info : -There are no lockers in the dorms or anywhere. - No laundry - The main room is the bar, with a terrace. It's the positive point! - Small kitchen, ok. - You can let your luggage in a storage area. - The location is central to visit the city I booked a double room the 2 following days. The room was ok, less noisy, clean. If you want some rest and privacy, do not book from Friday to Sunday, except if you have a double or family room.

3. Dalur - HI Hostel

Sundlaugavegur 34, Reykjavik 105 Iceland
Excellent
34%
Good
43%
Satisfactory
17%
Poor
4%
Terrible
2%
Overall Ratings

4 based on 374 reviews

Dalur - HI Hostel

Dalur - a hostel & cafe & bar is located in the green heart of Reykjavik. Newly renovated and comfortable HI Hostel next door to the largest geothermal pool, known for being The Original Hostel in Reykjavik and the very first ECO hostel in Iceland. It is ideal for Best Friends and families of all sorts, Rooms are 2-6 persons with private bathroom, linen is included. The excellent facilities include complimentary self-service laundry, guest kitchens, and course access to the best and ever so popular by locals, the family-friendly Cafe & Bar. Free High-speed WI-FI. Self CheckÍn options for late arrivals. Free luggage storage on the day of arrival and departure. Our hostel staff knows the city inside out and are on hand to help with anything you need. All the most exciting tours and excursions are bookable with complimentary pick up / drop off. FREE Parking in front. Walking to the center is around 30 min by the coastline.

Thumbs Down

Reviewed By NicoleR2201

After hours check in was easy and quick, we received the keybox code the day of our arrival and were able to get our keycard without any problems. There is a parking lot on the property which was convenient. Unfortunately, the rest of our stay was only mediocre. It is a 30 min walk/10 min drive to the city center. We booked because there was supposedly breakfast included, only to never see any staff or any information for times. The shower in our room dripped and the floor was wet all throughout our stay. The bathroom light started flickering like a horror movie our second day, we showered in the dark to avoid the premonition of being murdered. When we went out for the day staff entered our room and left the door UNLOCKED and OPEN until we returned at 9 pm. Luckily nothing was taken, but I felt as if the "privacy" of our PRIVATE room was violated. Would not stay here again.

4. Hostel B47

Baronsstigur 47 Our entrance is at the backside of the building, enter from the parking lot., Reykjavik 101 Iceland
Excellent
28%
Good
28%
Satisfactory
15%
Poor
14%
Terrible
15%
Overall Ratings

3.5 based on 169 reviews

Hostel B47

This self-service hostel is a 5-minute walk from main street shops and bars. It features a guest kitchenette (fridge, toaster and a microwave. No oven or stove) and a comfy TV lounge. We provide free Wi-Fi. All rooms at Hostel B47 include a sink and blackout blinds. Bathroom facilities are shared. We are a self check-in hostel with no reception. You will get a code to enter your room securely without checking in. You can reach us by phone 24/7 if you need any help.

Great price-value ratio

Reviewed By KaiPan-Pictures

Good hostel stay with friendly staff and good facilities. Especially liked the breakfast selection being offered by Christina and her team. The room with two single beds was spacious, maybe some more storage space wouldn‘t harm for those who stay a bit longer. We were perfectly find to leave everything in our bags as we were staying three nights only. Thanks for your kind hospitality!

5. Guesthouse Andrea

Njardargata 43, Reykjavik 101 Iceland
Excellent
16%
Good
31%
Satisfactory
27%
Poor
18%
Terrible
8%
Overall Ratings

3.5 based on 83 reviews

Guesthouse Andrea

Great place, but...

Reviewed By DoNotChris

This was a great place. It's located right next to Hallgrimskirken, which makes it easy to explore Reykjavik and there is plenty of parking space in the area. I was positively surprised by the breakfast, and you have the option to store and make food in the evening. The staff is very kind and helpful as well. However, the room I was in leaked water through the ceiling when it rained and there was a rather significant buildup of mould in the upper corner of my room, which made me slightly ill towards the end of my stay. I would otherwise give this place 5 stars, but I can't recommend this place before this issue is adressed, as it's only going to get worse with time.

6. Laekur Guesthouse

Hrisateigi 47, Reykjavik 105 Iceland
Excellent
56%
Good
11%
Satisfactory
22%
Poor
11%
Terrible
0%
Overall Ratings

4 based on 9 reviews

Laekur Guesthouse

An Excellent, Clean, Comfy & Well-Equipped Budget Hostel

Reviewed By LesleyScarborough

Our family comprising 2 grandparents, our son, his wife and our 4 year old granddaughter stayed in the guesthouse annex on the first floor above 3 small shops next to the bar and hostel entrance. We stayed in rooms 5 & 6 which were opposite each other, just off the lounge diner area. The bedrooms both contained a comfy double and a single divan bed, each with a pillow, cushion, small blanket and single duvet per person (so the double bed had 2 single duvets, which worked fine). There was 1 large towel each, a bedside table and reading lamp and 4 power points. Our large windows had roller blinds and a view towards the car park and small supermarket with a grocers and hot dog/ice cream parlour next to it. Everything was very clean. The floors were laminate and there was a dressing table with drawer and big wooden hangers on hooks for clothes. I would have liked a mirror, chair and somewhere to hang our towels to dry but these were small problems to overcome. The room was very warm, and we kept the small window open all the time. The kitchen was very well equipped with a full size fridge-freezer, plenty of glasses, crockery, cutlery and pans, washing-up liquid, dishwasher and tablets, microwave, 2 kettles, & an oven in the island facing the sink. A sign asked us to put everything through the dishwasher rather than hand wash it. There were post-it notes to attach to items put in the shared fridge, with room number and date of departure on, which was sensible. The modern dining table had 6 chairs and there were 2 leather sofas and 2 coffee tables. There was also a small table & 2 chairs in the kitchen plus some stools. Next to the kitchen was a power shower and sink with a washing machine and drier in. There was a separate toilet and a bedroom by the entrance and a large bathroom with shower, toilet and big sink unit that served the other 3 bedrooms. All the water was geothermally heated and had a slightly sulphurous small which we got used to. There was a drying rack on the small balcony off the lounge area. Guests were asked to be quiet after 9pm because people had to get up early for flights or excursions, and although the other 4 bedrooms were occupied during the week of our stay, everyone was quiet and friendly. There was no noise from the bar below us to the side though the weather was good and even hot and sunny on 2 days (22 degrees C). The small supermarket was very useful as was the bakery below, where the cinammon buns were delicious! We also enjoyed ice cream and hot dogs made with proper sausages from the shop next to it and found the food in the hostel bar tasty and reasonably priced, for Iceland. We had no need of a car since the hostel is served by 3 bus routes, the 12, 14 & 16 which we used by downloading the Straeto App and paying online for each journey. The hostel is 2 minutes' from the seafront and because the weather was so lovely we walked into town twice, enjoying the tourist attractions on the way. The walk in the opposite direction is also interesting, towards the recycled house and crazy sculptures and beautiful bay. At the other end of the road is a large swimming pool, the botanical gardens and cafe, a petting zoo and big playpark. There's also the national soccer stadium where we saw Aberdeen FC play one evening! I was apprehensive about staying in a hostel at my age (66) but would stay there again and felt it good value for money compared with the cost of an AirBnB or hotel.

7. Lava Hostel

Hjallabraut 51, Hafnarfjordur 220 Iceland
Excellent
50%
Good
33%
Satisfactory
10%
Poor
6%
Terrible
0%
Overall Ratings

4.5 based on 48 reviews

Lava Hostel

Lava Hostel offers low price accommodation in in a quiet and beautiful area of Hafnarfjordur. It is the perfect location to start or end your Iceland trip, as it is located only 30 minutes from Keflavik International Airport and 10 minutes from Downtown Reykjavik. In this great atmosphere we offer both private rooms for 2 to 4 people and dormitory sleeping bag accommodation for 4 - 8 people. There is also a camping site next to the hostel. All our guests are welcome to use our kitchenette and dining area. There is free parking, and free Wi-Fi in the house. The hostel and campsite is closed for winter and will open again in May 2019.

Small but nice campsite

Reviewed By alistaird8992

We stayed at the campsite of this hostel the first and the last night of our trip in Iceland. The staff was really friendly and we were allowed to use the kitchen facilities of the hostel. Showers smell like egg but it is normal in Iceland. It is located in a really quiet neighbourhood and has a nice park next to it. Reykjavik city center is located about 10 min by car from there.

8. Bus Hostel

Skogarhlid 10, Reykjavik 105 Iceland
Excellent
43%
Good
35%
Satisfactory
14%
Poor
5%
Terrible
3%
Overall Ratings

4 based on 443 reviews

Bus Hostel

Welcome to Bus Hostel. We offer a relaxed and inviting environment for the budget-conscious traveler. Our dorms are simple, bright and comfortable ranging from 4 to 24 bed rooms as well as more private room options. The dorms are sleeping bag accommodation, however our private rooms come complete with duvets and towels. Additionally, all of our rooms and common areas have access to our free wifi.Our spacious bathrooms all come with private showers. You can relax in our lounge which is complete with a small bar. The bar has excellent happy hour prices and a very reasonably priced breakfast. Or you can prepare your meal in one of our two fully equipped kitchens. We are happy to help you plan your trip in Iceland. The front desk is open 24/7, and our friendly staff are more than happy to help you book your return shuttle, tours or give you directions around town. We have a car rental at the front desk and plenty of parking outside. Bus Hostel Reykjavik is located only a few minutes away from the major bus routes in and out of Reykjavik. We are a 15 minute walk from the main shopping streets in the downtown area in one direction and Kringlan the mall in the other. Perlan, the Klambratun park and Kjarvalsstadir art museum are all just ten minute walks from us as well.

Don't stay here

Reviewed By Ella H

Location isn’t good compared to other hostels in city. Only good if you want to get the shuttle to the airport for an early flight, but be aware the shuttle leaves early. We got there at 4am for our shuttle and it had left, the rude lady on reception told us it was full and left at 4am on the dot. She wasn’t helpful, and was extremely rude. The facilities are gross, the kitchen isn’t looked after at all, it’s tiny and it’s very very hot everywhere. The dorms aren’t set out very well so there’s barely any space. Bathrooms were gross and stunk, one the light wasn’t working, one the lock didn’t work. Hostel needs a lot of TLC. Instead of booking here I would suggest Kex Hostel, lovely staff, good location, and clean facilities.

9. Gest-Inn Guesthouse

Njardargata 29, Reykjavik 101 Iceland
Excellent
50%
Good
30%
Satisfactory
12%
Poor
5%
Terrible
2%
Overall Ratings

4 based on 162 reviews

Gest-Inn Guesthouse

Exceptional value for money stay in Reykjavik

Reviewed By SophieCT1982

Stayed here Jan 2020 with my boyfriend. We were travelling on a budget but this accommodation surpassed our expectations. Rooms were cosy and clean with plenty of storage space and the beds incredibly comfortable. We shared a bathroom but did not find this to be a problem at all. The bathroom was shared between just 3 rooms and during our stay it felt as though we had sole use of it! It was always immaculately clean. The guesthouse is ideally located close to the church and there is plenty of free on-street parking in the immediate area. Exceptional value for money! Staff were lovely . Would recommend to friends and family

10. Circle Hostel

Hringbraut 121 Vesturbaer, Reykjavik 101 Iceland
Excellent
35%
Good
36%
Satisfactory
18%
Poor
8%
Terrible
3%
Overall Ratings

4 based on 213 reviews

Circle Hostel

Circle Hostel is a low cost, self-check-in hostel located in West Reykjavík a 10-15 min walk from the absolute center. The building is ocean front and some rooms have beautiful ocean views! We also feature a sun room common area and a shared kitchen as well as a terrace to relax in the sun.

Worse than jail! Stay away!!

Reviewed By alioath

I would rate this 0 stars if I could. We thought the relatively good reviews would ensure that we would have a good stay. We stayed the last leg of our trip for 2 nights. Sure, it's cheap. But what you save in money, you lose in everything else. This place is like a crack den. It's worse than jail! The room pictures are misleading and not at all what they appear to be. The floors are hard concrete. The room has nothing but a hard, uncomfortable twin size mattress and a wire coat rack. Not a lamp, not a bedside table, not a rug, not a wall decor. Not a d@mn thing. We never felt safe here. The hallway isn't well lit. Neither is the stairwell. Check-in was difficult because it was self check in, but no information arrived that allowed us to do it. We had to contact someone and he gave us attitude. We often camp outdoors in the wilderness, braving animals, bugs, dirt, and cold. I would take that over this place any day. Stay away, spend the extra bucks elsewhere. Location is ok, but the hostel is on the outskirts of the area.

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