Best hostels in Reykjavik

Reykjavik's hostel inventory clusters in three patches of the city, each trading something different for a bed. Austurbær holds the old downtown core where Laugavegur runs its full commercial length and the harbor sits a few blocks north; hostels here cost more because the walk to Hallgrímskirkja, Harpa, and the whale-watching pier is short. Hlíðar wraps around the BSÍ bus terminal south of the Tjörnin pond, where most backpackers land first when their airport bus pulls in; prices drop because the streets are quieter and restaurants thin out past Hringbraut. Teigar stretches east past the university into lower-density residential blocks, where hostel beds stay cheap and the domestic airport's runway sits closer than the nearest tourist shop. The three neighborhoods form a compact arc along Reykjavik's southwest coast, so the choice comes down to what you want outside the door each morning: the commercial spine, the transit hub, or the residential calm.

1. 1

   Austurbær

   Downtown core along Laugavegur, central Reykjavik

   Reykjavik's walkable commercial spine, where the harbor, the concert hall, and the cathedral are all a short stroll from your bunk.

   At $54 a night, Hostel B47 holds an 8.6 on Austurbær's main artery, Laugavegur, and that rate reflects the address more than the amenities. Skip the overpriced guesthouse cluster near the Hlemmur bus square; those rooms trade on proximity to the bar strip and little else. Austurbær puts Hallgrímskirkja, the Harpa concert hall, and the old harbor whale-watching pier within a short walk from any bed on the block. The neighborhood runs loud after midnight on weekends when Laugavegur fills with bar traffic, and quiets down by Tuesday. This is the right area if you want to leave your hostel and be standing in front of something worth seeing in minutes; it is wrong if you need silence or a kitchen at a lower price point.

   1. Budget

      Hostel B47

      8.6/10 rating ~$54/night
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2. 2

   Hlíðar

   South of Tjörnin pond around BSÍ bus terminal, Reykjavik

   Reykjavik's transit hub neighborhood, where the airport shuttle and every day-tour coach stop before the city center does.

   The BSÍ bus terminal hums at the center of Hlíðar, and Bus Hostel Reykjavik sits steps from the coach bays. At $36 a night it undercuts the $54 beds on Laugavegur, and the walk north into Austurbær's commercial core crosses just one main road, Hringbraut. Don't bother with the taxi-fare guesthouses near the domestic airport; this transit hub puts every Golden Circle bus and South Coast day tour at the front door. The neighborhood is quieter than the downtown bar strip, with the Tjörnin pond and Reykjavik's free-entry city hall on the north side. Hlíðar suits the traveler arriving late on the Keflavík shuttle who wants a pillow before a plan, not someone looking for Reykjavik's nightlife on foot.

   1. Budget

      Bus Hostel Reykjavik - Reykjavik Terminal

      ~$36/night
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3. 3

   Teigar

   Eastern residential blocks past the university, Reykjavik

   Quiet residential grid east of the center, where grocery stores outnumber restaurants and the geothermal pool complex is the main landmark.

   At about $38 a night, Lækur Hostel holds an 8.2 in Teigar's quiet eastern blocks, where the residential grid replaces the tourist spine. Avoid the cookie-cutter guesthouses clustered by the conference hotels; Teigar's draw is the calm of a neighborhood that does not perform for visitors. The Reykjavik domestic airport runway sits south of here, and Laugardalur's geothermal pool complex is the nearest landmark worth a detour. Grocery stores outnumber restaurants in this stretch, which works in your favor when a Reykjavik dinner costs what a hostel bed does. Teigar fits the traveler who wants cheap sleep and a functioning kitchen, not one who needs a bar crawl outside the door. The walk west into Austurbær follows Laugavegur's full length.

   1. Budget

      Lækur Hostel

      8.2/10 rating ~$38/night
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