Centrally located budget hostel with friendly staff and clean, comfortable rooms. Offers both dorms and private rooms, shared kitchen, and common areas. Walking distance to all major attractions. Good choice for budget-conscious travelers.
Bus Hostel Reykjavik is a centrally located budget property at Vatnsstígur 10 in the 101 Reykjavík district, positioned in the heart of the Old Town approximately midway between Laugavegur shopping street and Tjörnin lake. The hostel takes its name from Iceland's tradition of long-distance bus travel that connects the country's dispersed communities, reflecting the wandering spirit associated with budget travel across the island. It has built a solid reputation among backpackers and independent travellers for reliable, no-fuss accommodation at competitive prices in a city where budget options are relatively limited.
The hostel offers a combination of dormitory beds and private rooms catering to solo travellers, couples, and small groups. Dormitory configurations range from four to ten beds per room, with individual power sockets and storage space for each guest. Private rooms are simply furnished but clean and practical. Shared bathrooms are distributed throughout the building and kept at a satisfactory standard. A 24-hour reception desk allows guests arriving on early-morning or late-night flights from Keflavík Airport to check in without complications.
The shared kitchen is fully equipped with cooking facilities, refrigerator storage, and a kettle. Self-catering is the most effective way to manage costs in Reykjavík, where restaurant prices rank among Europe's highest; the nearby Bónus and Krónan supermarkets are Iceland's most affordable grocery chains. A communal lounge provides space for socialising, with maps, brochures, and information boards for route planning. Free Wi-Fi is available throughout the building, along with laundry facilities and luggage storage before and after official check-in and check-out times.
Bus Hostel's Vatnsstígur location places guests within ten minutes' walk of Hallgrímskirkja church, the Einar Jónsson Sculpture Museum, the National Museum of Iceland, and Tjörnin lake. The main Laugavegur street is five minutes on foot. The BSÍ domestic bus terminal — the main hub for day trips to Þingvellir, Geysir, and Gullfoss — is approximately 1.5 kilometres south, reachable by a 20-minute walk or a short city bus ride from nearby stops.
Amenities
- shared kitchen
- common room
- free Wi-Fi
- luggage storage
- laundry
- central location
Location
Vatnsstígur 10, 101 Reykjavík
64.1440, -21.9305 View on map
Highlights
- Prime 101 Reykjavík Old Town location — five minutes from Laugavegur and ten minutes from Hallgrímskirkja church
- 24-hour reception for flexible arrival times, including late-night flights from Keflavík Airport
- Fully equipped shared kitchen for self-catering — the most effective way to reduce costs during expensive Reykjavík stays
- Clean dormitory and private rooms with laundry facilities, free Wi-Fi, and luggage storage
- Convenient access to BSÍ bus terminal for Golden Circle, South Shore, and Reykjanes day-trip departures
Tips for visiting
- Buy groceries at Bónus or Krónan — Iceland's most affordable supermarket chains — and use the hostel kitchen to significantly cut daily food costs
- Reserve a bed at least two weeks ahead for June to August arrivals; beds in smaller four-person dorms fill first
- 24-hour reception allows flexible check-in; luggage storage is available on arrival day before rooms are ready
- The BSÍ bus terminal is a 20-minute walk south — consider the city bus if arriving with heavy bags
- Earplugs are advisable for light sleepers in larger dormitory rooms, especially on busy summer weekends
Accessibility
Bus Hostel Reykjavik is housed in a multi-storey building in central Reykjavík. The historic building's original staircase layout limits full wheelchair accessibility, and lift access is not available to all floors. Guests with mobility requirements are advised to contact the hostel before booking to discuss ground-floor options and access limitations.
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Frequently asked questions
What types of rooms does Bus Hostel Reykjavik offer?
The hostel offers dormitory rooms ranging from four to ten beds and private rooms for couples and small groups. Dormitory beds include individual power sockets and personal storage. Bathroom facilities are shared throughout the building.
How close is Bus Hostel to the BSÍ bus terminal for day trips?
BSÍ domestic bus terminal — the main hub for excursions to the Golden Circle, South Shore, Reykjanes Peninsula, and Westfjords — is approximately 1.5 kilometres south of the hostel, about a 20-minute walk or a short city bus ride from nearby stops.
Is there luggage storage at Bus Hostel?
Yes. The hostel provides luggage storage facilities for guests arriving before their room is available or those who have checked out but have time remaining before a departure flight. A small fee may apply; confirm at reception.
Is Bus Hostel Reykjavik suitable for solo female travellers?
The hostel is generally considered safe and well-managed for solo female travellers. Female-only dormitory options may be available — confirm availability when booking, as these rooms fill faster than mixed dorms in peak season.