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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.

The Loft Hostel is in one of the best locations in Reykjavík

The Loft Hostel is in one of the best locations in Reykjavík

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.

All rooms are modern, clean, and spacious.

All rooms are modern, clean, and spacious.

All rooms are modern, clean, and spacious.

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.

The Loft Hostel is a great place to stay if you wish to explore Reykjavik.

The Loft Hostel is a great place to stay if you wish to explore Reykjavik.

The Loft Hostel is a great place to stay if you wish to explore Reykjavik.

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


Iceland Travel Guide Amazon

Lonely Planet Iceland 

Iceland Travel Guide Amazon

Ring Road Road Trips 

Iceland Travel Guide Amazon

Travel Guide From a Traveler


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 FacebookTwitterYouTubePinterest and Instagram.

Photo credits: Photos courtesy of property management. 


  1. Nice review Amy. I dig the look of the place. Cool extras too. Hip and fresh works for me, as today’s hostels have a different feel to them, from some of the rougher spots of the past.

    • Glad you enjoyed the review Ryan :) Today’s hostels really have stepped it up a notch – some compete pretty fiercely with hotels when it comes to the value for money in extras and atmosphere :)

  2. Thanks for sharing your experience at the hostel. It looks really nice and friendly for a solo traveller. Would look it up on my future visit to Iceland.

    • Absolutely – the Loft Hostel is a great stop for the solo traveler – really fun, upbeat atmosphere, and very safe, modern, clean and secure :)

      Have a great trip to Iceland!

  3. Very nice review! Really got a good feel for Reykjavik. I’m dying to visit Iceland and will definitely consider staying here. That funky little cafe is what my dream midcentury future living room will look like for sure.

    • Thanks Emma – I’m sure you’ll love Reykjavik – Iceland is the most incredible country in the world – it really left a lasting impression on me.

      And maybe the Loft Hostel will give you some design inspiration too!

  4. That is a great location! Love the atmosphere that fuse ball table sells it for me :)

    • They have great facilities which make for a really fun atmosphere, and of course the location is definitely amazing right in the center of the city too :)

  5. Nice review! Iceland is on our bucket list after seeing a friends pictures a few years back. This looks like an amazing hostel and a great choice for accommodation!

    • Thanks Sarah! You should definitely plan for Iceland – it’s one of the most incredible countries, and is easily our favorite – the nature is incredible – highly recommend the Loft Hostel as a base in Reykjavik :)

  6. Um, I’ve seen plenty of hostels, but that looks and sounds incredible! We stayed right around the corner from there when we visited this past February, and can confirm all the fabulous nearby attractions and such. Am also lusting after that gorgeous rooftop view! :) Thank you for sharing – will definitely add to our list of accommodations next time around!

    • It definitely raises the bar in terms of the quality you expect from a hostel. Definitely book a stay on your next trip through Reykjavik :)

  7. I can’t wait to visit Iceland one day. So many amazing photos has stirred my wanderlust. The Loft Hostel sounds like a great deal. And I love how cool and fresh it looks.

    • They’ve done an amazing job with the design – it’s very hip with a very lively, young vibe. Hope you have the chance to visit Iceland soon – it’s an incredible spot on the globe!

  8. I plan to travel to Iceland in the near future. This is very helpful. Thanks for all the great pictures which give me a sense of what it is like to stay there.

    • You’ll have such a wonderful time Annika, it’s out favorite country in the world :) Can highly recommend a stay at the Loft Hostel.

  9. This looks like an AMAZING hostel! I love the patio that over looks those bright Reykjavik buildings and street art! Plus, the rooms look wonderful and very clean! Their common space looks really nice and like a great place to hang out and meet people. My husband and I are wanting to go to Reykjavik next summer (I was there in February with my mom and he was super jealous). We may have to stay here while we’re in Reykjavik. I also like that you can book a car there. That way you can walk around Reykjavik then rent the car to head out.

    • They’ve definitely set an incredibly high standard when it comes to what you expect from a hostel.

      Definitely a great spot, even if you’re traveling as a couple – you can book the private rooms if you’re not keen on staying in a dorm, and still take advantage of the common areas and awesome atmosphere … also the view! And yes, I can highly recommend renting a car and venturing outside the city limits – it’s an incredible country, we can’t wait to head back!

      Have a great trip!

  10. This hostel looks very fresh and clean. When we stayed in Reykjavik we booked a deal through a third party and ended up in an expensive and not ideally located hotel. It took a while to walk to the city and we ended up skipping so much there because of it. I wish I knew about this hostel before I booked. I love the variety of rooms options which means it is safe for families like us too

    • Absolutely Natasha – it’s actually a lot better choice than the majority of hotels are – location is the biggest key, but then throw in the high standards of cleanliness, security, and upbeat atmosphere, and it’s a no brainier.

      The variety of rooms makes it a great option for all travelers, solo and couples / families alike :) Means you have a great place to stay on your next trip!

  11. The Photos looking amazing!

    • Hope you have the chance to travel soon!

  12. Great review :-) Having looked at various accommodation in Iceland previously it does seem quite expensive, so hostelling definitely a valid option.

    • Thanks Fiona – yes, especially in summer, Iceland accommodation can be quite pricey, so we choose to stay in hostels :)

  13. This hostel looks amazing! Nice find Amy. Cannot wait to visit Iceland before it’s completely unaffordable ?

    • Thanks Abigael – yes, we highly recommend visiting Iceland now :)

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