Iceland is a land of dramatic landscapes, from cascading waterfalls and volcanic craters to sprawling glaciers and the enchanting Northern Lights. I am always on the lookout for affordable yet comfortable accommodations that allow travelers to explore this breathtaking country without breaking the bank.
In this extensive travel guide, I’ll share my personal experience at a budget hotel in Reykjavik and introduce five other budget-friendly hotels across Iceland that offer great value for money.
My Stay at Guesthouse Sunna in Reykjavik
Location and Booking
Guesthouse Sunna is centrally located in Reykjavik, right next to the iconic Hallgrimskirkja church. Its address is Thorsgata 26, 101 Reykjavik, making it an ideal base for exploring the city. The guesthouse is within walking distance to many of Reykjavik’s main attractions, restaurants, and shops.
I booked my stay at Guesthouse Sunna through Booking.com. The process was seamless, with detailed descriptions of room types, amenities, and numerous guest reviews to guide my choice. The price for a single room was around $90 per night, which included breakfast—a great deal considering its prime location.
Getting There
From Keflavik International Airport, I took the Flybus, which offers direct service to most hotels and guesthouses in Reykjavik. The ride was comfortable and took about 45 minutes. The bus dropped me off at the BSI Bus Terminal, from where I took a short taxi ride to Guesthouse Sunna.
The Environment
Guesthouse Sunna boasts a charming and cozy environment. The exterior of the guesthouse is painted in a welcoming yellow hue, and the interior is equally inviting, with a warm and friendly atmosphere. The common areas are well-maintained, featuring comfortable seating and plenty of information about local tours and attractions.
Facilities and Amenities
My single room was modest yet comfortable, equipped with a single bed, a small desk, and a wardrobe. The room had an en-suite bathroom, which, while small, was clean and functional. Free Wi-Fi was available throughout the property, and there was also a communal kitchen where guests could prepare their own meals—a great way to save money on dining out.
The breakfast buffet included a good selection of breads, cereals, fruits, and cold cuts, as well as coffee, tea, and juices. It was a pleasant start to my day and kept me fueled for my city explorations.
Experience and Rating
The staff at Guesthouse Sunna were exceptionally friendly and helpful. They provided me with maps and recommended several local attractions and restaurants. The location of the guesthouse was perfect, allowing me to walk to most of Reykjavik’s sights, including the Harpa Concert Hall, the Sun Voyager sculpture, and the bustling Laugavegur shopping street.
Overall, my stay at Guesthouse Sunna was delightful. It offered excellent value for money, and I would rate it a solid 8.5 out of 10. The only minor drawback was the small size of the room, but considering the price and location, it was a trade-off I was willing to make.
Five Budget-Friendly Hotels in Iceland
While I only stayed at Guesthouse Sunna, I researched several other affordable accommodations across Iceland that offer great value for travelers on a budget. Here are five more budget-friendly hotels:
1. Hlemmur Square Hostel and Hotel
Location and Booking
Hlemmur Square is a unique combination of a luxury hotel and a budget hostel located at Laugavegur 105, 101 Reykjavik. Situated on the main shopping street, it is within walking distance of many attractions, including the Hallgrimskirkja church and Harpa Concert Hall.
You can book your stay at Hlemmur Square through their official website or platforms like Hostelworld and Booking.com. Prices for a bed in a dormitory start at around $40 per night, while private rooms are available from $90 per night.
Facilities and Amenities
Hlemmur Square offers both dormitory-style accommodations and private rooms, catering to a wide range of travelers. The dormitories are clean and spacious, equipped with bunk beds and individual lockers. Private rooms offer more privacy and include en-suite bathrooms, flat-screen TVs, and comfortable bedding.
The hotel features a bar and restaurant on-site, serving a variety of local and international dishes. Guests can also enjoy a shared lounge area, a fully equipped kitchen, and free Wi-Fi throughout the property.
Experience
Hlemmur Square is praised for its friendly atmosphere and excellent location. The staff are known for being helpful and knowledgeable, providing guests with tips on local attractions and transportation. The blend of hostel and hotel facilities makes it a great choice for budget-conscious travelers who still want some level of comfort and convenience.
2. Kex Hostel
Location and Booking
Kex Hostel is a stylish and affordable hostel located at Skúlagata 28, 101 Reykjavik. Housed in a former biscuit factory, Kex is just a short walk from Reykjavik’s city center and the waterfront.
Bookings can be made through the Kex Hostel website or popular booking platforms like Hostelworld and Booking.com. Dormitory beds start at around $35 per night, while private rooms are available from $80 per night.
Facilities and Amenities
Kex Hostel offers a variety of room types, including mixed dormitories, female-only dormitories, and private rooms. The dorms are spacious and equipped with sturdy bunk beds, personal reading lights, and lockers. Private rooms come with comfortable beds, en-suite or shared bathrooms, and stylish décor.
The hostel features a bar and restaurant that serves local cuisine and craft beers, a communal kitchen, a laundry room, and a cozy lounge area with books and board games. Free Wi-Fi is available throughout the property.
Experience
Kex Hostel is known for its trendy, industrial-chic vibe and lively social atmosphere. It regularly hosts live music events, film screenings, and other social activities, making it easy for guests to meet and mingle. The central location and unique ambiance make Kex Hostel a popular choice among budget travelers.
3. Loft HI Hostel
Location and Booking
Loft HI Hostel is centrally located at Bankastræti 7, 101 Reykjavik, just a short walk from many of the city’s main attractions, including Harpa Concert Hall and the Sun Voyager sculpture.
You can book a stay at Loft HI Hostel through the HI Hostels website or other booking platforms like Hostelworld and Booking.com. Dormitory beds start at approximately $40 per night, while private rooms are available from $90 per night.
Facilities and Amenities
Loft HI Hostel offers a range of accommodations, including mixed and female-only dormitories and private rooms. The dorms are equipped with comfortable bunk beds, personal lockers, and reading lights. Private rooms feature cozy beds, en-suite bathrooms, and modern furnishings.
The hostel has a rooftop terrace with stunning views of Reykjavik, a bar and café serving drinks and light snacks, a communal kitchen, and a lounge area with books and games. Free Wi-Fi is provided throughout the property.
Experience
Loft HI Hostel is highly regarded for its friendly staff, clean facilities, and excellent location. The rooftop terrace is a highlight, offering a great spot to relax and enjoy panoramic views of the city. The hostel regularly organizes social events, making it a great place for solo travelers to meet new people.
4. Reykjavik Downtown HI Hostel
Location and Booking
Reykjavik Downtown HI Hostel is located at Vesturgata 17, 101 Reykjavik, in a quiet yet central area of the city. It is within walking distance of the Old Harbor, the National Museum of Iceland, and numerous restaurants and shops.
Bookings can be made through the HI Hostels website or platforms like Hostelworld and Booking.com. Dormitory beds start at around $35 per night, while private rooms are available from $80 per night.
Facilities and Amenities
This hostel offers a variety of room options, including mixed and female-only dormitories and private rooms. The dorms are spacious and feature comfortable bunk beds, lockers, and reading lights. Private rooms are well-furnished with cozy beds and en-suite or shared bathrooms.
The hostel features a communal kitchen, a dining area, a lounge with a TV and books, and a laundry room. Free Wi-Fi is available throughout the property. Breakfast is offered for an additional fee.
Experience
Reykjavik Downtown HI Hostel is praised for its clean and comfortable accommodations, friendly staff, and central location. The quiet neighborhood provides a peaceful retreat while still being close to major attractions. The hostel’s communal areas foster a welcoming and social atmosphere.
5. Bus Hostel Reykjavik
Location and Booking
Bus Hostel Reykjavik is located at Skogarhlid 10, 105 Reykjavik, near the Reykjavik Bus Terminal. It is a bit further from the city center but offers easy access to public transportation and airport shuttles.
You can book a stay at Bus Hostel Reykjavik through their official website or platforms like Hostelworld and Booking.com. Dormitory beds start at approximately $30 per night, while private rooms are available from $75 per night.
Facilities and Amenities
Bus Hostel Reykjavik offers a variety of accommodations, including mixed and female-only dormitories and private rooms. The dorms are clean and functional, with sturdy bunk beds, personal lockers, and reading lights. Private rooms offer more privacy and come with comfortable beds and shared or en-suite bathrooms.
The hostel features a communal kitchen, a bar and lounge area, a game room with pool and foosball tables, and a laundry room. Free Wi-Fi is provided throughout the property. The on-site bar often hosts social events and live music.
Experience
Bus Hostel Reykjavik is known for its lively and social atmosphere, making it a great place for solo travelers and those looking to meet new people. The slightly out-of-town location is compensated by excellent transport links and affordable rates. The hostel staff are friendly and helpful, providing tips and assistance for exploring Reykjavik and beyond.
Iceland’s natural beauty and unique culture make it a must-visit destination, and with careful planning, it’s possible to explore this incredible country without spending a fortune. Guesthouse Sunna provided a comfortable and affordable base for my adventures in Reykjavik, and the other budget-friendly hotels I’ve highlighted offer great options for travelers looking to save on accommodation.