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The best hostels in South Iceland

Check out our selection of great hostels in South Iceland

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Review score

Wonderful: 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. 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
Wonderful
1,573 reviews
Price from
$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. The attention was excelent, everything well prepared and nice

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9.1
Wonderful
2,142 reviews
Price from
$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. Efra Sel was the nicest surprise of our trip when it comes to accommodation, and probably my favourite accommodation we stayed at in Iceland. The room was spacious and clean, and this was the only room where we had a sofa as part of a "living room corner" too. There was a sink and mirror in the room. The bathrooms are nice and there are 2 bathrooms for 6 rooms I think, which is a good ratio. We did not see other people, so it barely felt like a shared hostel bathroom. The kitchen is also well equipped with a large table facing large windows with a nice view outside. The price was also pretty affordable. We were sorry we booked only 1 night, and would definitely come back!

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9.1
Wonderful
110 reviews
Price from
$115
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. Excellent facilities, unique guesthouse on a beautiful property with Icelandic horses literally next to the front door. The owner was also extremely friendly.

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9
Wonderful
274 reviews
Price from
$93
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. The common space is homey, everything is clean. Location is good if you’re planning to go around Thingavellir/Geysir.

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9.1
Wonderful
670 reviews
Price from
$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 view is amazing. The bed is comfortable, and very soundproof. My room is right by the shower and toilet, but I can hear nothing. Nice and spacious kitchen

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8.6
Excellent
5,989 reviews
Price from
$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 . Stunning location with magnificent views from the canteen area. Great location for the south coast and plenty of parking available. Very cosy comfortable stay with easy self check in. Wouldn't hesitate staying again.

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8.1
Very Good
3,239 reviews
Price from
$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. This place really exceeded our expectations. It is listed as a "hostel" but it is one of a kind. It was like staying in a proper hotel, as we chose the "rent apartment" option.

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8.9
Excellent
1,587 reviews
Price from
$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. The kitchen and amenities. The location is also amazing.

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8.8
Excellent
1,603 reviews
Price from
$172
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. Beautiful location in Laugarvatn, close to many main sights. Restaurants and grocery in the area are limited.

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8.4
Very Good
1,487 reviews
Price from
$126
per night

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