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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. A guesthouse with its "own" waterfall? Possible. Located in a beautiful place, next to the mountains, with waterfalls all around. The room was perfect, shared bathrooms as well. The property has contacted me to inform about dinner... we opted in for the lamb soup and it was great, if you have the chance, do not miss it. Throughout the property there are pictures and little fun notes you want to read and see.

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9.1
Superb
1,523 reviews
Price from
₱ 4,331
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. I like that it is not your regular party hostel (really don't like those) this place has class! The decor is one of a kind and the staff and amenities are definitely hotel level. It's really cozy which is good after a day of hiking. They have a lot of showers and bathrooms and everything is super clean. Food at the restaurant was marvelous! I asked for the vegan cabbage dish and it blew my mind. Breakfast is worth it, early in the morning you get a wonderful view of the sunrise through the restaurant windows. I'd totally recommend this place for solo travelers, couples or even families (the place is run by the family and friends, everyone is super nice, even the dog is around!)

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9.2
Superb
1,962 reviews
Price from
₱ 2,808
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
₱ 3,812
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. Everything, super cozy, clean, everything you need, great location.

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9.2
Superb
590 reviews
Price from
₱ 5,591
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. It was very nice and clean! the staff was very friendly and we had a wonderful view on the sea. From the kitchen you can watch & enjoy a beautiful sunset!

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8.7
Fabulous
5,542 reviews
Price from
₱ 6,607
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 . Good and quiet location, excellent facilities. It was our second trip to iceland and we stayed in this place during both trips.

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8.1
Very good
2,875 reviews
Price from
₱ 9,857
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. Everything was clean. staff was friendly. We arrived late but there were no issues. Comfy beds, kitchen to make your meals. Spacious bathroom and showers. Overall satisfied. Main tourist sights are close.

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8.8
Fabulous
2,263 reviews
Price from
₱ 3,049
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. So friendly, so cozy, loved it so much

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8.9
Fabulous
2,019 reviews
Price from
₱ 11,092
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. We were happy to host. Very clean and the atmosphere is pleasant. Thermal baths a short walk away

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8.4
Very good
1,336 reviews
Price from
₱ 9,949
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. Great place to stay Very clean Free parking Kitchen with everything you need

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8.8
Fabulous
2,116 reviews
Price from
₱ 3,431
per night

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