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The below list shows destinations with budget accommodation, guesthouses and hostels in Iceland. Select a destination to browse a list of properties and book Iceland hostels with no booking fees!

· Akureyri
· Borgarnes
· Höfn · Hvammstangi · Hvolsvöllur
· Isafjorgur
· Keflavik · Kopavogur
· Neskaupstaður
· Olafsfjordur
· Reykjavik
· Selfoss
  Top 5 Hostels in Iceland
Sleeping Bag Accommodation

Sleeping Bag Accommodation (Akureyri)

The home in Draflastadir II has been changed to Sleeping Bag Holiday accommodation. In the older home in Draflastadir II...

Reykjavik Downtown Hostel

Reykjavik Downtown Hostel (Reykjavik)

Now one year old, Reykjavik Down-town Hostel has firmly established itself as one of the most extremely recommended Host...

Ar Guesthouse

Ar Guesthouse (Reykjavik)

AR Guesthouse is a lovely stone house with budget lodging in spacious and clean rooms with shared bathroom and cooking a...

Aurora Guesthouse

Aurora Guesthouse (Reykjavik)

Guesthouse Aurora delivers bed and breakfast and is situated in the center of Reykjavik only 400 metres from the major s...

Guesthouse Von

Guesthouse Von (Reykjavik)

Guesthouse Von is a small, comfortable and friendly lodging house, located within the center of downtown Reykjavik on th...

Hotel Egilsbud Capitano

Hotel Egilsbud Capitano (Neskaupstaður)

This newly renovated hotel with its 9 rooms is located on the main strip in central Neskaupstaður. The guests get no co...

  Recent Reviews About Iceland Hostels
Kex Hostel

Kex Hostel in Reykjavik, Iceland

 Reviewed by Lisa G.

The superb atmosphere! Kex is an old factory and they certainly did their really best to preserve the retro feeling.

Kex Hostel

Kex Hostel in Reykjavik, Iceland

 Reviewed by Customer Review

We loved Kex hostel! Clean rooms, lots of bathroom/shower options. Outstanding food &&& bar downstairs. Really welcoming atmosphere and we really enjoyed our stay here! We were able to walk to a local pastry shop and get around on public bus system right from Kex hostel.

Kex Hostel

Kex Hostel in Reykjavik, Iceland

 Reviewed by Customer Review

Great atmosphere, they have a really cool bar and cooking area with jazz nights on Tuesday that draws in a large local crowd. Lot&'s of friendly travellers with plenty of common areas to hang out in. Excellent location, can walk most places inside the city inside 10 mins.

Kex Hostel

Kex Hostel in Reykjavik, Iceland

 Reviewed by Michael S.

Welcoming setting and an awesome social scene. Beds were comfortable. The food is excellent. Down-town is within walking distance. Effortless to drive to.