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Budget-friendly hotels in Iceland for an 8-day adventure (February 2025)
In Iceland, expect a range of budget-friendly accommodations including hostels, guesthouses, and budget hotels. These typically offer basic amenities, shared or private bathrooms, and are conveniently located near popular attractions like the Blue Lagoon, Golden Circle, and stunning waterfalls.
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85% Match










Kex Hostel
Skúlagata 28, 101 Reykjavík

Storied Collection:
budget-friendly
central location
communal kitchen
This hostel is perfect for your **budget-friendly** adventure, offering a communal kitchen and a vibrant atmosphere with an on-site restaurant and bar. Its central location near Laugarvegur shopping street makes it an ideal base for exploring Reykjavik and beyond.... Read more
7.9
Good
(4548 reviews)
Matched amenities:
Parking
24-hour front desk
Garden
Non-smoking rooms
Internet services
85% Match










Hostel B47
Baronstigur 47, 101 Reykjavík

Storied Collection:
budget-friendly
central location
shared facilities
Hostel B47 is a great choice for a **budget-friendly** stay in Iceland, offering a shared lounge and a garden for relaxation after your adventures. Its prime location near popular attractions like Hallgrímskirkja Church and the city center makes it perfect for exploring Reykjavík without breaking the bank.... Read more
8.0
Good
(4994 reviews)
Matched amenities:
Parking
Free parking
Internet services
Free WiFi
Daily housekeeping
90% Match










Baron's Hostel
47 Barónsstígur, 101 Reykjavík

Storied Collection:
budget-friendly
free WiFi
central location
Baron's Hostel is a **budget-friendly** option located in the heart of Reykjavík, making it perfect for your 8-day adventure. With **free WiFi** and a shared lounge, you'll have everything you need to relax and connect with fellow travelers after a day of exploring.... Read more
8.6
Very Good
(3182 reviews)
Matched amenities:
Parking
Free parking
Internet services
Free WiFi
Shared kitchen
85% Match










Bus Hostel Reykjavik - Reykjavik Terminal
Skógarhlíd 10, 105 Reykjavík

Storied Collection:
budget-friendly
shared kitchen
adventure
This hostel is a great choice for a **budget-friendly** stay, offering shared accommodations and a **shared kitchen** to help save on meal costs. With a convenient location near popular attractions and activities like skiing, it's perfect for your adventure in Iceland.... Read more
7.9
Good
(2218 reviews)
Matched amenities:
Parking
Bar
24-hour front desk
Airport shuttle
Free parking
85% Match










SM Hostel
Skógarhlíð 20 105, 105 Reykjavík

Storied Collection:
budget-friendly
shared kitchen
central location
This hostel is a great choice for a **budget-friendly** stay, offering shared kitchen facilities to help you save on meals during your 8-day adventure. Its proximity to popular attractions like The Pearl and Hallgrímskirkja Church makes it an ideal base for exploring Reykjavík.... Read more
5.1
Fair
(831 reviews)
Matched amenities:
Parking
Free parking
Internet services
Free WiFi
Air conditioning
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