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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. This hostel is made in the building of a former old school. That makes it look like a cool and creative maze with beautiful staircase, spacious social area and cozy rooms. Staff is amazing and fun, caring and friendly people who offered free handmade cake to all the guests. It was a delight to stay in Paradise Cave. The kitchen is big and has everything you need to cook decent meals, and also there is a nice waterfall view from the window. Shared bathroom is spacious and clean. Room was comfy and had neat decorations. The spirit of the place is all friendly and youthful, was very refreshing mentally :)

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9
Wonderful
1,618 reviews
Price from
$75
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 is an excellent location if you are planning to visit the south coast and central highlands, with clean common areas, good rooms plus beds(not squeaky at all), warm and hospitable staff, and great food. I'll stay here again in the future.

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9.1
Wonderful
2,175 reviews
Price from
$67
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. Excellent place, comfortable, beautiful and good service, without a doubt if you are looking for a place to spend the night, this place is super recommended

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9.1
Wonderful
677 reviews
Price from
$82
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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9.2
Wonderful
86 reviews
Price from
$128
per night

Set in Hvolsvöllur, 2 km from Seljalandsfoss, Valkyrie Guesthouse - 1km from SELJALANDSFOSS offers accommodation with a garden, free private parking, a shared lounge and a terrace. The property is allergy-free and is located 31 km from Skogafoss Waterfall.

All guest rooms come with a fridge, microwave, a coffee machine, a shower, a hairdryer and a desk. The units at the hostel are equipped with a private bathroom and bed linen. Beautiful, lovingly furnished and very comfortable guesthouse. The kitchen is well equipped and the owners are friendly and helpful.

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9.8
Exceptional
6 reviews
Price from
$235
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. Very clean, very kinf staff, good location, good for parking

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8.6
Excellent
6,071 reviews
Price from
$82
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 . Kitchen and dining room were big. Also there was a lot of bathrooms which was nice.

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8.1
Very Good
3,293 reviews
Price from
$187
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. Probably the cleanest place around Iceland, and the guy in the reception was amiable and helpful!

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8.9
Excellent
1,626 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. Mike is an amazing host, he offers coffee, tea, milk, skyr, and a delicious welcoming cake. The rooms are spacious and comfy, there is also a small sink inside. We really felt like at home!

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8.8
Excellent
1,637 reviews
Price from
$240
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. Very good place, just go and see :) Reccomended by Homeless Pelican <3

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8.4
Very Good
1,495 reviews
Price from
$168
per night

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