Top Hostels in Southern Peninsula in 2026

A geothermal spa with multiple pools, a wooden bridge, and a modern building in the background.

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Our top choices for Southern Peninsula hostels

1. KEX Hotel and Hostel Reykjavik

Downtown Reykjavik

Alex

AED 434 total

includes taxes & fees

8 Nov - 9 Nov

A building with multiple windows and a tower with a spire.

2. Hostel B47

Downtown Reykjavik

Thomas

AED 352 total

includes taxes & fees

16 Nov - 17 Nov

A modern bedroom with a black bed, a wooden floor, a fur rug, a bedside table with a vase, and a hanging light fixture.

3. Bus Hostel Reykjavik

Hlíðar

Deborah

AED 353 total

includes taxes & fees

2 Dec - 3 Dec

A modern hotel room with a large bed, two bedside tables, and a unique wall design with triangular light fixtures.

4. Start Hostel

Reykjanesbær

Jessica

AED 522 total

includes taxes & fees

13 Nov - 14 Nov

A modern living area with sofas, a coffee table, and a dining table.

5. B14 Hostel

Laugardalur

Ryan

A modern kitchen with white cabinetry, a dishwasher, and a window providing natural light.

6. ASTIN ER SVARID HOSTEL

Keflavík

Darren

AED 560 total

includes taxes & fees

10 Nov - 11 Nov

A modern interior with a wooden staircase, a sofa with cushions, a small white table, and a dining area with people.

7. Lækur Hostel

Laugardalur

Ahmad

A hotel room with bunk beds, a large mirror, and a wall-mounted light fixture.

8. Nordic Hostel

Downtown Reykjavik

brianna

A two-story house with a snow-covered roof and a white picket fence.

9. Refurinn Reykjavik Guesthouse - Hostel

Vesturbær

Justina

AED 371 total

includes taxes & fees

22 Nov - 23 Nov

A room with a large wooden table, multiple chairs, a sofa, and a bench. There are windows with curtains, a potted plant, and wall-mounted artwork.

10. Student hotel & hostel

Downtown Reykjavik

Katie

A building with multiple windows and a flat roof, under a night sky with green aurora lights.

11. Hostel Fjordur

Hafnarfjörður

Kanchan

AED 349 total

includes taxes & fees

6 Dec - 7 Dec

A building with a sign reading "Domus Guesthouse" and a contact number.

12. Domus Guesthouse - Hostel

Downtown Reykjavik

Karl

13. Reykjavik Hostel Village

Downtown Reykjavik

"Vi kom sent om aftenen efter receptionens lukketid og skulle derfor finde information og nøgle i en konvulut ved ankomst. Der var midlertidig ingen konvulut og efter en del søgen måtte vi ringe på et nummer for at få vores værelse. Der får vi at vide at vi skal gå et godt stykke ned ad vejen til et andet Hostel hvor en medarbejder ville møde os. Det forvirrede og stressede os at vi pludselig skulle have et nyt hotel. Efter lidt venten det nye sted kom medarbejderen og fandt efter lidt søgen på...

Anonymous traveler

14. SM Hostel

Hlíðar

15. Lava Hostel

Hafnarfjordur

A two-story building with a sign indicating it is a hostel.

16. Hot Springs Hostel

Hveragerdi

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Top Southern Peninsula Hotel Reviews

Hotel Reykjavík Grand

10/10 Excellent

"The staff was super friendly and helpful also we did both dinner and breakfast at the hotel and they were fantastic."

Reykjavik Residence Apartment Hotel

10/10 Excellent

"We loved our stay! We were fortunate enough to have been in the same building as the reception staff which worked out great for us. Most of the staff were very friendly, informative, and provided great service. They provided suggestions for food eateries, fresh towels and buckets of ice upon requests. There were drinks such as bottled beer available for purchase, however, it was somewhat disappointing that they did not have a bottle opener for use—hmm. We booked a spacious room which was clean and comfortable and made use of their laundry facility which thankfully was available when we had down time between our tours. Thank you for a wonderful stay. Overall, I highly recommend this place."

The Retreat at Blue Lagoon Iceland

10/10 Excellent

"This, in my opinion, is the best hotel in the world. The mix of ultra luxury without over pampering you is amazing. The mini bar is complimentary with unlimited refills. The surroundings and lagoons are beyond breathtaking. In the last 3 years I've been there in November I've seen the northern lights every time. I have never felt closer to nature while at a hotel. The outside world disappears and you are more relaxed than you've ever been. The only 10/10 I will ever give."

Room 1

Change your mind

Treat yourself

Be picky

Check prices for these dates

Our top choices for Southern Peninsula hostels

1. KEX Hotel and Hostel Reykjavik

2. Hostel B47

3. Bus Hostel Reykjavik

4. Start Hostel

5. B14 Hostel

6. ASTIN ER SVARID HOSTEL

7. Lækur Hostel

8. Nordic Hostel

9. Refurinn Reykjavik Guesthouse - Hostel

10. Student hotel & hostel

11. Hostel Fjordur

12. Domus Guesthouse - Hostel

13. Reykjavik Hostel Village

14. SM Hostel

15. Lava Hostel

16. Hot Springs Hostel

Top Southern Peninsula Hotel Reviews

Hotel Reykjavík Grand

Reykjavik Residence Apartment Hotel

Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF

Miðgarður by Center Hotels

The Retreat at Blue Lagoon Iceland

Courtyard by Marriott Reykjavik Keflavik Airport

Reykjavik Marina - Berjaya Iceland Hotels

The Reykjavik EDITION

Northern Light Inn

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