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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. Good simple breakfast, fantastic location right above the waterfall. The hostel is based in ex boarding school with makes it special.

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9
Superb
1,526 reviews
Price from
US$71
per night

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. It had a sauna and a hot tub on the roof. It was amazing after a long day of hiking and driving.

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9.1
Superb
2,124 reviews
Price from
US$38
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. Perfect accommodation, couldn't ask for anything more.The room was cosy. The kitchen is more equipped than my own. Beautiful dining area with a big window. Clean and curated bathroom. Also we had to cancel one of the nights we booked and they were kind enough to give us a full refund even if it was just one day before. I think that if every guest used the kitchen then it might get crowded, but on the night we were there it was just another couple of people, so it was perfect.

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9.2
Superb
116 reviews
Price from
US$105
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. The host went above and beyond to accommodate our stay.

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9
Superb
263 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. We were really lucky - the hosts offered us to stay in a separate house for four people instead of the hostel room, and it was absolutely wonderful! The house was very cozy, with a kitchen and everything we needed for cooking. Our group felt completely comfortable and at home there. The location is great - right between Geysir and Gullfoss, and not far from the main road. There’s also a nearby farm with beautiful horses, where you can go for a horseback ride. It was a perfect stop on our Iceland trip. Highly recommended! 🐎✨🌿

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9.2
Superb
675 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. Outstanding, recently renovated/built hostel! I've been to many and this is by far one of the best ones. Everything was spotless, stylish decor, sockets by the bed as well as curtains for each bed to give more privacy in dormitories. A lot of showers and toilets, even hair dryers and straighteners available.

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8.6
Fabulous
5,947 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 . 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
3,258 reviews
Price from
US$144
per night

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. Perfect place to stay if you visit this part of Iceland, good wifi, parking, nice village, 10min drive to selfoss, me and my son spend 3 nights here and everything was good

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8.9
Fabulous
1,558 reviews
Price from
US$56
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. I stayed here for fourth time since 2017, and always everything was perfect! Nice location, helpful stuff, clean and comfortable rooms! Nice kitchen with everything you need, and espresso Cafe machine, more than perfect!!!

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8.7
Fabulous
1,596 reviews
Price from
US$170
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. Breakfast was very good and not too expensive. Loved all the decorations and atmosphere there. The view over the lake is insane!!!

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8.4
Very good
1,469 reviews
Price from
US$115
per night

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