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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+
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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 for guests. We received a very warm welcome. The location was excellent for what we needed. Beautiful waterfall just outside the door. The room was spacious, super clean with a comfortable bed. Everything was spotless and we can truly recommend this place.

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9
Superb
1,521 reviews

Located in Hvolsvöllur and with Seljalandsfoss reachable within 22 km, Midgard Base Camp provides concierge services, non-smoking rooms, a shared lounge, free WiFi throughout the property and a terrace. Providing a restaurant, the property also has a garden, as well as a sauna and a hot tub. The accommodation features evening entertainment and a tour desk.

Buffet and continental breakfast options are available at the hostel. So this the time when you really don't expect a lot, but it turned out to be one of the best stays we had in Iceland. Really nice people, human approach, great facilities. Loved it, definitely will come back

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9.1
Superb
2,121 reviews
Price from
US$37
per night

Located in Fludir, 25 km from Geysir, Efra Sel Hostel provides accommodation with a garden, free private parking, a shared lounge and a terrace. The accommodation offers a shared kitchen and free WiFi. We stayed in the guest house and absolutely loved it! The location is very convenient — almost in the center, and only about 1–1.5 hours’ drive to Reykjavik, waterfalls, geysers, and the beach. The place was clean, warm, and very comfortable. It had everything we needed — a hairdryer, straightener, a bean-to-cup coffee machine, a Ninja multi-grill, and a dishwasher. The living room has a stunning panoramic view — the perfect spot to enjoy your morning coffee with the sunshine ☀️ The Wi-Fi is super fast, too. It was also really thoughtful that the hosts provided shower gels, shampoo, conditioner, makeup remover wipes, and even some feminine products — such a nice touch! There’s also a hot tub with warm water, which was a great bonus after a day of exploring.

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9.2
Superb
117 reviews
Price from
US$93
per night

The rooms in the hostel are fitted with a coffee machine. Featuring a shared bathroom with a shower and a hairdryer, rooms at The Coffee House also boast free WiFi. The units will provide guests with a fridge. We had an amazing experience and would highly recommend it to anyone traveling through the area! The vibe here is super laid-back and friendly, which made meeting other travelers really easy and enjoyable. The facilities are top-notch—clean, well-maintained with cozy bedrooms. The common areas are perfect for relaxing, socializing, or catching up on work. I can't wait to return to Iceland and will definitely be back next time. Highly recommended!

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9
Superb
259 reviews
Price from
US$87
per night

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. Very clean, very comfortable, very nice location and great people.

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9.2
Superb
673 reviews
Price from
US$81
per night

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. The common kitchen has a lot of equipment. I really like it. The accommodation near black sand beach.

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8.6
Fabulous
5,929 reviews
Price from
US$60
per night

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 all perfect clean and beautiful..!

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8.1
Very good
3,264 reviews

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. We were 2 families of 4 travelling together and booked 2 apartments, that we got right next to each other. Apartments were a lot bigger than we expected to be (shown in the pictures). Kitchen was almost perfectly stocked with all the utensils, kitchenware and basic seasoning (salt, pepper, oil). Kitchen could use a bigger wisp though. And it only missed a good peeler for vegetables. Otherwise it was perfect. I was dual-wielding 2 pans every day to make pan-cakes. Location was selected very carefully. It was a nice hub to stay and popular Icelandic sights are all nearby or mostly hour or so away: Reykjavík, Blue Lagoon, Golden Circle, waterfalls in the east and etc. Not to mention nice walks in local town or nearby black dune beach. Larger grocery stores are only 10 min drive away.

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8.9
Fabulous
1,554 reviews
Price from
US$55
per night

Set a 10-minute drive from Jökulsárlón Glacier, this farm Guesthouse offers rooms with free Wi-Fi and mountain views. Iceland’s Ring Road is right next to the property.

Guest rooms at Skyrhusid Guesthouse have an in-room wash basin. All have access to shared bathroom facilities. Bed linen and towels are included. Everything was perfect!! Staff was very kind and so nice 🥰

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8.8
Fabulous
1,590 reviews
Price from
US$150
per night

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. The room cleanliness and comfort was exceptional. The shower was wonderful. Breakfast was delicious.

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8.4
Very good
1,464 reviews
Price from
US$93
per night

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