Hostelling International is a network of friendly and affordable hostels all around the world. It’s a community that supports sustainable travel, values the environment, and brings together like-minded travellers. This time, we’re heading north to Iceland, where HI has been helping people enjoy amazing experiences with nature and friendly local communities for over eighty years.
HI Iceland is an important member of the Hostelling International network, with a proud tradition of over 80 years of connecting travellers and hosts. Since 1939, HI Iceland has been helping travellers discover the magic of one of the world’s most remarkable destinations.
Their network now includes 18 hostels spread across the country. Two of them, Loft and Dalur, are owned by HI Iceland, while the others belong to local partners. These partnerships ensure that each hostel maintains a high standard of quality while also offering an authentic experience of Icelandic culture and surroundings.
HI Iceland hostels offer truly unique experiences. Spend the night on a remote farm with the northern lights dancing overhead, soak in a hot tub overlooking the Icelandic countryside, or unwind in a sauna housed in a former hospital. What really sets HI hostels apart is their warm, family-like atmosphere, with hosts who are always happy to share their knowledge about the local area.
HI Iceland hostels are affordable, high-quality, and offer experiences you won’t find anywhere else.
Every hostel in the HI Iceland network meets strict standards for quality and sustainability. Some hostels have been awarded the Nordic Eco Label and the HI Sustainability Label, recognising their commitment to sustainable practices. This means you can enjoy your trip without compromising on comfort, while also helping to protect the natural environment.
Their hostels cater to all sorts of travellers. They’ve got everything from family rooms and child-friendly areas to lively common spaces where you can meet other travellers and swap stories and experiences.
Here are some of the best hostels from the HI Iceland network. Each hostel has its own story, character and community.
Loft HI Hostel is considered the best HI hostel in Iceland, often chosen by guests for its central location right in the heart of Reykjavík. Its location makes it easy to explore the city’s sights, with the bus station for tours just a short walk away. The hostel is popular with both tourists and locals, mainly because of its terrace and bar where you can soak up the sun and enjoy a variety of events like live music, karaoke, and pub quizzes. The hostel is aimed at young travellers, couples, and groups looking for a sociable atmosphere. Loft is perfect for anyone wanting to experience Reykjavík while supporting sustainable travel, as it holds the Nordic Eco Label and works to reduce its guests’ carbon footprint.
Dalur HI Hostel lies in a green and quiet area of Laugardalur, with easy access to Reykjavík city centre. The hostel and its café offer a relaxed vibe where you can enjoy locally roasted coffee or a pint, unwind on the terrace, or take a walk through the nearby park. It’s ideal for families, groups, and solo travellers who want peace and quiet but still want to be close to the city’s sights. There’s free parking, electric vehicle charging points, and airport transfers available. Nearby, you’ll find thermal pools and a zoo. The hostel operates with a strong commitment to sustainable tourism and careful environmental care.
Korpudalur HI Hostel is nestled in the beautiful Westfjords, in an old family farmhouse. Surrounded by snow-capped mountains, the hostel offers the perfect escape from the hustle and bustle of city life and a chance to connect with untouched nature. Guests can relax in a comfortable lounge or head out for a hike in the surrounding area. The hostel is a great base for exploring nearby towns like Ísafjörður, Súðavík, and Flateyri, as well as natural sights such as the Dynjandi waterfall and the sandy beach in Önundarfjordur fjord. The hostel operates to high standards of sustainable tourism, caring for the environment through responsible practices and working closely with the local community.
Sæberg HI Hostel provides a tranquil escape in the Icelandic countryside right by the fjord. Guests can choose from shared rooms, private rooms, camping, or even cabin rentals. A special feature of the hostel is its private geothermal hot tub by the sea, offering views of the fjord, the midnight sun in summer, and the northern lights in winter. Animal lovers will love watching ducks and maybe even seals or whales. Close by, there’s a local museum and the Icelandic Seal Centre, where you can learn about the area’s nature and culture. Sæberg HI Hostel is committed to sustainable tourism and looks after the environment by actively adopting eco-friendly practices.
Hafaldan HI Hostel is right in the heart of Seyðisfjörður, set in an old hospital with an interesting history and a well-kept interior. There are cosy common areas, a kitchen for cooking your own meals, and a sauna where you can unwind after a long day of exploring. You can choose between different rooms with private or shared bathrooms, so the hostel is suitable for families, couples, groups and individuals who appreciate the authentic hostel atmosphere. Nearby are the Skaftfell Art Center, the Tvísöngur sculpture, and the Hengifoss and Litlanesfoss waterfalls. For complete relaxation, the Vök geothermal spa is also nearby. The hostel operates sustainably, caring for both the environment and the local community.
The newest member of HI Iceland, Skyrhúsið, is located in Hali Sudursveit, just ten minutes from the Jökulsárlón glacier lagoon and Diamond Beach. The hostel is set in a renovated farmhouse with a modern kitchen. It’s situated next to the home of the famous Icelandic writer Þórbergur Þórðarson, where you can also visit a museum house. The hostel is a great base for exploring southern and eastern Iceland, including Skaftafell, the Svartifoss waterfall, and the Vatnajökull glacier. Skyrhúsið also follows high sustainability standards and supports the local community.
HI Iceland hostels are spread across the whole country, from the capital Reykjavík to the remote corners of the Westfjords. Wherever you stay, you’ll always be close to natural wonders like glacier lagoons, waterfalls, volcanoes, and geothermal pools.
Each location offers a unique experience. You can relax in warm thermal springs by the sea, set off on hiking trails, or marvel at the northern lights. Besides accommodation, HI Iceland also helps with planning trips and transport, revealing hidden gems so you can truly experience Iceland in all its authenticity.
Travelling around Iceland with HI hostels is easy and flexible, making it a great choice for anyone wanting to explore this unique country.
Booking a HI hostel in Iceland is quick and easy.
You can visit the official HI hostels website, where you can also explore other hostels around the world. HI Iceland also has its own website, where you can find all the details about each location, availability, and prices across Iceland. Most hostels also offer direct online booking with the option to cancel free of charge.
If you’re a member of any HI organisation, you’ll get a 10% discount on every night you stay. Membership is valid worldwide and offers more than just discounts. You’ll also enjoy cheaper tours, reduced entry fees, and much more!
Make sure you book your room early in high season, as demand is high, especially in popular destinations like Reykjavík, Jökulsárlón, or the West Fjords.
Read about our journalists’ firsthand experiences of Iceland before your trip.
In his article, Dušan describes how after 16 days and over 4,300 kilometres on the road, he experienced an incredible blend of stunning nature with powerful waterfalls, glaciers and volcanoes, together with the warm hospitality of the locals. He was inspired not only by natural beauty, but also by the vibrant capital Reykjavík, interesting museums, and authentic local stories. According to him, Iceland is a destination where every traveller can find something special and take home unforgettable memories.
Our journalist Nina also visited Iceland and described in the first part of the article how she was impressed by the stunning nature, clean environment and warmth of the people. In the article, she describes unique natural features like geysers, glacier lakes, waterfalls, and the northern lights, which she missed as they mostly appear between October and March. She also praised the locals’ eco-awareness and unique way of life, like the self-service petrol stations and local music, which made her time in Iceland even more special.
Travelling around Iceland with the HI hostel network is more than just a convenient place to stay, as each hostel opens the door to a different part of Iceland’s nature, culture and community. Choose a HI hostel and enjoy cultural evenings in Reykjavík, relaxing dips in geothermal pools, and peaceful mornings surrounded by the magic of Iceland’s fjords.
Before you go, get a Hostelling International membership for a discount on all stays with HI Iceland and enjoy a carefree exploration of one of the most beautiful countries in Northern Europe.
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