Authored by Amy Donoghue

The country has become somewhat of a trend in recent years, and as with any destination which has seen a recent surge in tourism, it’s quite difficult to find great value accommodation when you’re deciding where to stay in Iceland.

Difficult, though not impossible. Especially if you’re looking at Iceland’s hostels.

With some of the highest standards of hostel accommodation in the world (in terms of cleanliness, character, rooms and facilities), if you’re heading to Iceland, it’s a no brainer to book a hostel. And if you’re looking for Reykjavík’s cream of the crop, we recommend a stay at the Loft Hostel.

Offering a range of dorms, twins and private rooms, it has a modern, clean interior, a buzzing vibe, and a great location right in the middle of the city’s bar, restaurant and cafe district. It was also voted the world’s best HI (Hostelling International) hostel in 2014. Awards aside, this is what else it’s got.

Loft Hostel Reykjavík: Iceland Accommodation Review

A Killer Location

The Loft Hostel is in one of the best locations in Reykjavík – literally a 1 minute walk from the city center, and a great base for any traveler wanting to explore Iceland’s capital.

It’s an equally fantastic base for those flying into Reykjavík before departing for a road trip along the Ring Road (which we highly recommend), and you can book a car rental at the hostel front desk.

Because of the great location, the hostel’s spacious balcony boasts a great view over the city and it’s an incredible spot to enjoy the midnight sun during summer months or catch the Northern Lights during winter.

A stay here puts you within easy proximity to just about everything. Major sights like Hallgrímskirkja, Tjornin (the city pond) and Harpa Concert Hall are all a five-minute stroll away and there are cafés and bars all around.

Great Rooms

Over the 4 floors of the hostel, there are 2 floors dedicated to dormitories, with each dorm boasting it’s own bathroom and additional disabled bathrooms scattered throughout the hallways (the hostel has full wheelchair access). Not many hostels offer dorms with ensuite bathrooms, so this is quite a luxury.

There are six and eight-bedded dorms (including two that are female-only) which feature custom bunk beds with built-in reading lights, your own power sockets and trundle lockers for your valuables (locks not provided). These are a great budget option, yet still offer a small space to call your own.

There are also four-bedded rooms, doubles, twins and a few in the double deluxe category which have comfortable double beds and overlook Reykjavík’s main street. These are a great option if you’re after more privacy. All rooms are modern, clean, and spacious.

All bed linen is provided by the hostel, however don’t forget to bring along your own towel. If you’re leaving to explore for the day and wish to lock your bigger bags away, even after check-out, there is free luggage storage near reception.

Food & Drink

The Loft Hostel offers plenty of dining space, and the 40 sq meter outdoor terrace is a wonderful place to enjoy your food. In the morning if you’re feeling hungry, there is a breakfast bar where you can feast on a range of cereal, toast, waffles, croissants, salads and beverages including juice, tea and coffee.

Alternatively, there is a guest kitchen which you can access at any point during the day to prepare your own food. If cooking isn’t for you, there is a large selection of great restaurants and cafes only a short walk down the main road.

Though the hostel itself serves excellent coffee, which you can enjoy along with a slice of home baked cake. Their bar offers a good selection of Icelandic beer from local breweries too.

All the Essential Extras

The loft hostel provides all the essential extras, including free high speed wifi, stylish common areas, and exciting tours. It’s much more than just accommodation – they’ll take you on an adventure all over the country if you like, or you can venture out on your own in a car rental booked onsite.

Reception is located on the top floor, along with the common areas which includes a bar/café, a foosball table, and an expansive reading space where you can swap books or just chill our with a book on the couch.

The hostel has a fresh and hip atmosphere, and public spaces have an upbeat interior created by local young designers. They’re colorful, modern, spacious, and designed to attract natural light throughout the day.

All hostel staff are extremely friendly and helpful, happy to answer any questions and recommend local places to eat and sightsee. There are also a string of in house events, with nightly activities at the hostel itself including concerts, weekly yoga, pub quizzes, poetry nights and more, which are always free and open to locals as well as guests.

Would We Recommend?

The Loft Hostel is a great place to stay if you wish to explore Reykjavik. Would I recommend this hostel to others? Absolutely! Would I stay there again? I can’t wait!

Loft Hostel is a part of HI Iceland; a chain of 33 HI Hostels around Iceland. For more information, or to check availability, contact the hostel, or book a room:

Visit the Loft Hostel Website

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Megan is an Australian Journalist and award-winning travel writer who has been blogging since 2007. Her husband Mike is the American naturalist and wildlife photographer behind Waking Up Wild; a website dedicated to opening your eyes to the wild & natural world.

Committed to bringing you the best in adventure travel from all around the globe, there is no mountain too high, and no fete too extreme! They haven’t been everywhere, but it’s on their list.

If you enjoy getting social, you can follow their journey on Facebook, Twitter, YouTube, Pinterest and Instagram.

Photo credits: Photos courtesy of property management.