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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+
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. What a beautiful, comfy hostel located at a heavenly little piece of earth !! It was super clean, the beds are comfortable, the staff was welcoming and super friendly. The breakfast was delicious with fruit, skyr yoghurt, bread and cereal. I can only recommend the Paradise Cave Hostel !

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9.1
Superb
1,490 reviews
Price from
THB 1,607
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
1,951 reviews
Price from
THB 1,651
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. super location, lovely cottage. beds were comfortable, and the kids loved their upstairs loft:) facilities were clean, kitchenette was outfitted with coffee and tea.

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9.1
Superb
583 reviews
Price from
THB 3,472
per night

Valkyrie Guesthouse - 1km from SELJALANDSFOSS

Hvolsvöllur

Set in Hvolsvöllur, 2 km from Seljalandsfoss, Valkyrie Guesthouse - 1km from SELJALANDSFOSS offers accommodation with a garden, free private parking, a shared lounge and a terrace. The hostel has a hot tub and a shared kitchen. Host was very responsive and helpful. I really appreciate her being kind and trying to help me. I had a great stay!

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9.7
Exceptional
44 reviews
Price from
THB 3,945
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. Excellent place to stay close to black beach in Iceland. Very well equipped and spacious kitchen. Mattresses are very comfortable, probably the best in a hostel. Rooms were cleaned and tidy. Good beer and excellent staff.

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8.7
Fabulous
5,506 reviews
Price from
THB 4,153
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 . Best spot to see the northern lights! The beds are comfortable, the toilets are clean, and there are 3 kitchens which makes it easy to cook your meal!

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8.1
Very good
2,851 reviews
Price from
THB 4,711
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. Great location for touring the golden circle

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8.8
Fabulous
2,280 reviews
Price from
THB 1,894
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. Really nice host, cozy bed! Excellent :)

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8.9
Fabulous
2,008 reviews
Price from
THB 4,544
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. Location was great, parking was good, Building fit out is perfect

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8.4
Very good
1,331 reviews
Price from
THB 3,905
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. really good and always clean facilities.

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8.8
Fabulous
2,089 reviews
Price from
THB 1,864
per night

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