Rest at happening hostels in Iceland

1) Galaxy Pod Hostel

While much of Iceland still feels antiquated, Reykjavík’s Galaxy Pod Hostel strives to impress with its futuristic aesthetic. Not unlike the iconic Japanese capsule hotels, guests will be designated their very own pod as a sleeping quarters, complete with a private TV screen, lockers and a safe. Galaxy Pod Hostel also offers a Virtual Reality room, a Scandinavian-style lounge bar, free Wi-Fi and a freshly stocked self-serving kitchen. If you’re looking for budget accommodation with a real twist, look no further than here.

a sleeping pod at Galaxy Pod Hostel in Iceland

Laugavegur 172, 105 Reykjavík

+354 511 0505

2) Bakki Apartments & Hostel

Only two shops are found in Eyrarbakki town; there is Laugabúð, much the same as it was upon opening in 1900, and the local gas station and convenience store. Also nearby is Bakki Apartments & Hostel, particularly suited to those looking for privacy and solace. There are nine fully furnished studio apartments, and dormitories capable of accommodating up to 36 people, including 6-bed dorms for women only. The accommodation is built right on the seaside and is only a five-minute walk from the beloved Rauða Húsið restaurant. Eyrarbakki is another gateway town to the popular Golden Circle sightseeing route.

interior of living area at Bakki Apartments & Hostel

Eyrargata 51-53, 820 Eyrarbakki

+354 788 8200

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3) Vibrant Iceland Hostel

Offering homebuilt bunk beds enclosed with curtains, Vibrant Iceland Hostel guarantees as much ease and comfort as is possible on the cheap. This includes fast-Wi-Fi, hotel-grade showers and a large shared kitchen where guests are free to dip into the fresh-bean coffee and tea. Vibrant Iceland Hostel is located in Hafnarfjörður, approximately eight kilometres from downtown Reykjavík, making it a good choice for return travellers looking for other places to stay in the Capital Region aside from the capital itself.

a hostel drom at Vibrant Iceland Hostel

Kaplahraun 9-B, 220 Hafnarfjörður

+354 419 2847

4) Midgard Base Camp

Modern, sophisticated and with all the necessary facilities on-site, Midgard Base Camp provides every luxury a traveller could ever desire while taking a respite from exploring South Iceland. Midgard Base Camp is particularly favoured for its thrilling 4x4 sightseeing excursions into the intrepid and often inaccessible Icelandic Highlands. The restaurant and bar also host live events throughout the year, as well as serving delectable dishes including prime lamb rib, smoked arctic char and pan-fried salmon.

a wooden cabin at Midgard Base Camp

Ívar Eyþórsson

Dufþaksbraut 14, 860 Hvolsvöllur

+354 578 3180

5) The Barn

The seafront village, Vík, is a frequent sojourn along Iceland’s south coast and is routinely utilised as a lunch stop by tour companies. Only seven kilometres away, The Barn hostel is considered one of the better accommodation options for those looking to extend their stay in Vík longer. Complimentary parking, double rooms and free Wi-Fi make staying overnight an easy affair. Well-rated by loved-up travelling couples, The Barn’s sophisticated hostel bar is the best way to wind down after a long day exploring.

warm and cozy interior of the Barn hostel

Norðurfoss, 871 Vík í Mýrdal

+354 779 1166

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