Top Hostels in Southern Region in 2026

A waterfall cascading down a cliff into a valley with a river flowing through it.

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A coastal scene with a rocky cliff, a beach, and a lighthouse in the distance.

A large waterfall cascading down a steep cliff.

Our top choices for Southern Region hostels

1. The Fox Hostel

Hrífunesvegur

Joe

AED 289 total

includes taxes & fees

18 Oct - 19 Oct

2. The Barn - Hostel

Vik I Myrdal

Ricardo

AED 430 total

includes taxes & fees

6 Oct - 7 Oct

3. Skogar Hostel

Rangárþing eystra

Cheryl

AED 516 total

includes taxes & fees

11 Oct - 12 Oct

4. Efra Sel

Flúðir

Charlotte

5. Blue Hostel Bláu Fjöll

Vestmannaeyjar

Simon

6. Hólaskjól Highlandcenter

Kirkjubaejarklaustur

Leon

7. Paradise Cave Hostel & Guesthouse

Rangarthing eystra

Margaret

8. Vik HI hostel

Vik I Myrdal

Christine

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Top Southern Region Hotel Reviews

Hotel Grimsborgir by Keahotels

10/10 Excellent

"Excellent place to stay in Iceland. Quiet and clean rooms. The breakfast was delicious. Friendly and helpful staff. I highly recommend this hotel."

The Greenhouse Hotel

8/10 Good

"I waited to write my review to see if the issues we had were normal in Iceland or if the problem was this hotel. This was our first stop once we landed. To start, this was not a cheap hotel so I had certain expectations that were not met. There were many positives though such as the most comfortable bed in any of the stays we had on this trip. The room was large enough for our needs. The food hall was great (expensive but tasty) and the free breakfast was delicious and filling. We were able to use the free swimming tickets at the local pool that we found on our bulletin board. Thanks for those! The pool and hot tub was perfect after our flight. What I had issues with was that there was a strong urine smell in the bathroom, as if someone urinated on the floor and it wasn’t washed. The hanging lights beside the bed were chipped and the paint on them peeling off. One of the blinds fell partially down when we tried to use them, as if they had been broken previously and hastily repaired, but not well. The towels were where I was shocked the most. They were cheap and threadbare, with the edges all unravelled and strings hanging down. They were certainly not what I expected from a hotel. Even the Airbnb I stayed in had plush towels."