There is no denying that hostels are the most cost-effective forms of accommodation one can rely on during solo travels in Iceland! And wait! Let’s not ignore the big bonus of choosing this option. You end up with lifelong friendships from these stays if you find the right people (I am not exaggerating!). 

While there is no reason for you to be super cautious and filter out fun, taking basic safety measures is a must on your solo trip. Remember, you are on your own—be it itinerary, choosing the right transport, or the place to camp! That control freak best friend is unfortunately not next to you on a solo trip! 

Bad accommodations can ruin an otherwise good trip. So do a little extra homework and make some decent choices in choosing the right place for yourself. 

In the past few years, reviews have been a great way for most of us to book places. But I have this golden formula for myself—every option does not work well for everyone! So if you do not like the cacophony, choose a hostel room accordingly! If you are all for partying with your fellow dorm mates, you should definitely go for the hostels with bustling ambience. If you are somewhere in the middle like I am who enjoys a vibrant hostel culture but likes solo time, Iceland has an amazing array of choices for you too!

1. Kex Hostel

You will have few complaints about this hostel. In addition to being super cosy and clean, it is at a stone’s throw distance away from Reykjavik’s city centre. This means you have unlimited access to morning and evening walks, downtown cafes, and bar hopping at the city centre!

Located in the old biscuit factory, Kex Hostel is an ensemble of stunning interior decor. You will be spoilt for choices when it comes to choosing a room at this hostel—it has over 210 rooms! There is an all-female dorm as well. The other options are single and twin occupancy. There are also double and family rooms.

The list of amenities is not very short either. If you are a fitness freak, do not miss using its in-house gym. Though old school, it won’t disappoint you. As a solo traveller, there will be moments that you crave some good company over a coffee. You can use the lounge area to mingle with other guests or to curl up with a book. The information desk is super helpful! Just go to them if you have queries on how to go around the town or if you want some extra comfort at the hostel!

I did make good use of the guest kitchen. I found it a fulfilling experience to shop for vegetables at the local markets and make quite scrumptious dishes in the kitchen! The outdoor heated patio is another attraction to stay in this hostel. 

2. Loft Hi Hostel

This hostel promises an undisputed location—it is super close to the main shopping street and just a five-minute walk from the Reykjavik cathedral.   

If you are a lover of vibrant hostel cultures, this one will surely impress you. In addition to regular free events, there are beer sessions during the months of summer. Do take advantage of the happy hours if you are sticking around in the hostel. They are from 4 pm to 8 pm. In the winter, you will find people huddled to catch a glimpse of the Northern Lights here.

Be it karaoke, yoga, drag shows, or pub crawls, this hostel covers it all for you. 

Safety is a priority for the hostel. There are female-only dorms too at this hostel which is a great budget-friendly option for solo female travellers! Access to the hostel is through a keycard which is another added layer to your security during your stay here.

3. Galaxy Pod Hostel

This is slightly over a 10-minute walk from the city centre. So if you want to escape the bustle of downtown, this is a great option. 

This place offers pods which is a completely new way of experiencing a hostel. You are in a shared dormitory but have your own space! How cool is that? This comes in place of the regular bunk beds! Let me tell you a little bit more about the pods—they also have a security box, mirror, fans, power plugs, and light settings.

There are also lockers in all the rooms, so you need not worry about where to stash away your laptop and other essentials while you are going away for long hours.  

Round the corner, there is a 24X7 supermarket which will be extremely convenient if you are planning to cook your meals or want to pick up a pre-cooked one!

For a woman solo traveller, this is a highly recommended option!

P.S Do not forget to take selfies at your pod!

4. Laekur Hostel

If you are high on aesthetics, this place which has Nordic-style rooms and dorms, will definitely leave you impressed. Located in Laugardalur, it will help you find your calm. 

Let me give a secret away. Outside the hostel, there is a hidden geothermal stream running under the street! 

Guests typically use the kitchen and common areas to get together to bond and know each other! You can even make plans with like-minded people since you are travelling solo and maybe a little flexible with your itinerary! 

5. Igdlo Hostel

This no-frill hostel provides affordable accommodation for solo women travellers. They have single bedrooms to four bedded rooms! And comfort does not need to take a back seat at this place as the family-owned business does everything to help you out with your requirements. 

The dining area is pretty huge. You can make your meals in the kitchen or order them if you are feeling too lazy!

Do speak to the staff to get local tips! The location will also speak for itself with the hostel situated less than 500 m from the main bus terminal

6. Dalur Hi Hostel

This hostel is located at the exotic location of Laugardalur Park and near to stadiums and Laugardalslaug, which happens to be the country’s biggest thermal pool and spa. Around a 30 minute walk to the city centre, this is a perfect place to slow down and catch up with other fellow travellers!

If you are visiting the countryside, and want to witness spellbound views, choose this accommodation. Since you are travelling alone and looking for some ‘me time,’ you can even leave the tour bookings to the hostel staff. Trust me—they will do a great job with it!

The in-house cafe and lounge area are great places for socialising and exchanging notes with other occupants on which hidden places you should explore next.

This place also offers female-only dorms alongside mixed dorms! 

7. Bus Hostel (My personal favourite one!)

This is an excellent option if you are relying on the bus as your main mode of transport to get around the city. 

The vibe here is fantastic—so chic!  

The hostel shares its location with the Reykjavik bus terminal. If you are planning to take the bus for sightseeing, this hostel will be a great option as it is the meeting point of all buses.

There are mixed and female-only dorms and private rooms. 

The reception is ever ready to help you out with information.

8. Midgard Base Camp

This family-run hostel can give competition to expensive hotels for the warmth and love they provide you with. 

This hostel is located in a small town called Hvolsvollur. While the town only has a population of around 900 inhabitants, tourists go to this location to make it the starting point of their day trips. You can hike to the Golden Circle and Reykjadalur geothermal. 

Enjoy the silence ringing through the town while wandering around nature’s beauties, and return to this delightful hostel!

9. Akureyri Backpackers

You will obviously want to explore the gorgeous Akureyri on your solo trip to Iceland. The Akureyri Backpackers is perfect for those who want to get a local flavour of the place!

You will mostly find a young crowd here. The rooms are clean and perfect for spending a couple of nights. You can go for a drink at the hostel bar or enjoy a latte with other guests at the cafe!

10. Akureyri HI Hostel

Akureyri is the second largest city of Iceland after Reykjavik, and it is only natural that you would want to spend some time there. You can even consider hostel hopping if you want to experience a range of accommodation options. 

This family-owned hostel is a 10-minute walk from central Akureyri. What you will like about this accommodation is some private space. There is a TV attached to each room to unwind in the room if you are not in a mood to go out!

This place even offers discounts on some activities, including whale watching. 

11. Start Hostel

This hostel is located near the Keflavik airport. So if you are looking for a quick stop-over or if Blue Lagoon is your first spot in the itinerary, you can consider this hostel! 

Like most hostels in Iceland, this too has dorms and private guest rooms. You can choose to have on-site breakfast or can even make your own food there! Its proximity to the airport makes it a convenient option for solo travellers! 

12. The Freezer

Well, well, this may seem less of a hostel and more of a luxurious cruise! This all-in-one hostel is quite popular and has even won awards!

Here, you can play board games, enjoy a theatre, live concerts and even exchange books! I would urge you to set aside a little extra money for the trip and spend more on accommodation so that you can enjoy these amenities. Do make good use of the bar and lounge as well!

13. Oddsson

While choosing a hostel in Iceland, remember that each place comes with its unique selling point. The Oddsson says it is perfect for people who are thrifty but have expensive taste (interesting, eh?)!

There is plenty of room to chit-chat with other guests. Do visit the restaurant and bar if you want to soak in the local Icelandic vibe.

14. Selfoss Hostel

Are you looking for a hostel with Jacuzzi and heated flooring? Well, you know you are in for a treat here then! 

This hostel is on the cheaper side, provides clean and basic beds, and a friendly ambience for the guests! 

15. Hostel Skogar 

A five-minute walk from the Skogarfoss waterfall, this is a top-notch accommodation with around 12 rooms for guests. 

If you want to feel a sense of belongingness, you can close your eyes and book this place! While the fireplace and amazing views of the gorgeous Icelandic landscape are the major attractions of staying in this hostel, you will also feel an oasis of calm during your stay here.  

Now that you know you are sorted when it comes to choosing the right accommodation, you are already several steps ahead! Solo travellers are also on the lookout for other budget accommodations like farmhouses, beds, and breakfasts. 

Find out the right fit for you, and waste no time in immersing yourself in Icelandic culture in the ‘Land of Fire and Ice.’