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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. Very close proximity to Seljalandsfoss and Gljufrabui waterfalls, about 8 minutes drive; good breakfast; clean toilets and showers; very nice decor and ambience of the place; and awesome, helpful staff-- most specially Lucia and Sole.

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9
Superb
1,551 reviews
Price from
US$72
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. Everything, the way they keep the place clean, quality of the beds and dorms, they even have a hot tub and sauna which is awesome.

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9.1
Superb
2,128 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. Very clean and spacious room, the guesthouse has also a living room/kitchen area with nice view. The kitchen is well equipped and we even had a coffee from a machine, enjoying our morning on the terrace. The staff - owners that we met are very friendly and open.

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9.2
Superb
110 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. We stayed at this guesthouse for just one night. We met the host, and she turned out to be a very welcoming and friendly woman. It was a real pleasure to chat with her and learn some nice little details about staying in Iceland.

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9
Superb
270 reviews
Price from
US$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. Geysir Hestar is a wonderful place to stay when you are doing the golden circle. A cosy welcoming guesthouse in the countryside, you can see the geysir area from your window - and islandic horses. We combined our stay with a horseback ride and Fanny was a fabulous guide. Ella, who is managing the guesthouse, will help you with all the questions you have.

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9.2
Superb
671 reviews
Price from
US$82
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. Super comfy beds, plenty cooking space and equipment for different groups, showers were clean and warm

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8.6
Fabulous
5,955 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 . cleanliness; ease of checking in and out; parking

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8.1
Very good
3,244 reviews
Price from
US$145
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. Nice facilities, nice place to see northern light.

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8.9
Fabulous
1,568 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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8.8
Fabulous
1,596 reviews
Price from
US$164
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 building is beautiful both inside and out, with a unique charm thanks to its history as an old school. The atmosphere has a very cool, distinctive vibe. Our room was on the smaller side, but it was comfortable and cozy. The shared bathrooms were decent and served their purpose. We also opted for breakfast, which featured a wide variety of options—and everything we tried was delicious.

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8.4
Very good
1,475 reviews
Price from
US$126
per night

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