Modern hostel in central Reykjavik with harbor views, clean facilities, and great atmosphere. Rooftop terrace, fully-equipped kitchen, and comfortable common areas. Mix of dorms and private rooms with Scandinavian design. Excellent value and location.
Loft Hostel is located at Bankastræti 7 in the 101 Reykjavík district, in a building rising above one of the capital's busiest pedestrian thoroughfares connecting Laugavegur shopping street to Austurvöllur Square. The position places guests within five minutes' walk of almost every central Reykjavík attraction — the Old Harbour, Tjörnin lake, the National Museum, and the main retail and dining strips — making it one of the city's most centrally located budget accommodation options. As the name suggests, the hostel makes a feature of its elevated position: upper floors and the rooftop afford views across the city roofline toward the harbour and, on clear days, the mountains beyond.
Loft offers both dormitory and private room options. Dorm beds are arranged in mixed-gender and female-only configurations, with individual curtains providing privacy on most bunk levels, personal power outlets, and reading lights. Private rooms range from compact doubles to ensuite options. Shared bathrooms are cleaned multiple times daily and maintained to a higher standard than many comparable Nordic hostels.
The rooftop terrace is Loft's defining attraction — an outdoor communal space with deck seating, fire pits, and harbour views that draws both hostel guests and ticketed visitors during Iceland's summer midnight-sun season, when the sky remains bright past midnight. A café and bar on the upper floor serves coffee, light food, and Icelandic craft beers, and the terrace hosts occasional events and evening gatherings in summer.
A fully equipped shared kitchen on a middle floor allows guests to self-cater — a practical economy in Iceland, where restaurant costs rank among the highest in Europe. Common areas include a reading lounge, free Wi-Fi throughout the building, and secure locker storage. The hostel operates 24-hour reception. Luggage storage is available before check-in and after check-out, convenient for guests catching evening flights from Keflavík Airport approximately 50 kilometres west. Loft appeals to backpackers, solo travellers, and budget-conscious couples who want a central base without sacrificing social atmosphere.
Amenities
- rooftop terrace
- shared kitchen
- harbor views
- free Wi-Fi
- lockers
- city center
Location
Bankastræti 7, 101 Reykjavík
64.1477, -21.9366 View on map
Highlights
- Rooftop terrace with harbour views and fire pits — open late during Iceland's summer midnight sun, one of Reykjavík's best informal viewpoints
- Prime Bankastræti location — five minutes' walk from Laugavegur shopping, Austurvöllur Square, and the Old Harbour
- Mixed and female-only dorm beds with individual curtains, reading lights, and power outlets for privacy and comfort
- Rooftop café and bar serving Icelandic craft beers, coffee, and light bites above the city roofscape
- 24-hour reception, secure luggage storage, and self-catering kitchen for flexible, cost-efficient stays
Tips for visiting
- Visit the rooftop terrace in the late evening during summer — the midnight-sun light is exceptional and the terrace fills fast after 21:00
- The shared kitchen is well equipped; the nearest Bónus supermarket is a few minutes' walk for affordable self-catering groceries
- Female-only dorms fill faster than mixed dorms — book these further in advance, especially for July and August arrivals
- Luggage storage is available on check-out day; use it if catching an evening Flybus to Keflavík Airport
- The hostel sits above a busy street; bring earplugs if sensitive to late-night pedestrian and bar noise on weekends
Accessibility
Loft Hostel occupies a multi-storey historic building in central Reykjavík. Lift access to upper guest room floors is available, but some areas — including parts of the rooftop terrace — have limited accessibility for guests with mobility impairments due to the building's original construction. Guests with specific requirements are advised to contact the hostel before booking to confirm suitable arrangements.
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Frequently asked questions
Can the rooftop terrace be accessed by non-guests?
Yes, the rooftop terrace is partly open to the public. Entry for non-guests is sometimes subject to a small admission fee, particularly during events. Hostel guests have priority access. Check the hostel's social channels for event schedules and ticketed nights.
Does Loft Hostel have private rooms?
Yes. In addition to dormitory beds, Loft offers private rooms including some ensuite configurations. Private room availability is limited, so booking in advance is strongly recommended, particularly during the June to August peak season.
Is there a curfew at Loft Hostel?
No. The hostel operates 24-hour reception with no curfew. The bar and common areas remain lively late in summer — guests preferring an early night may want to request a room away from the main social areas and bring earplugs.
How close is Loft Hostel to the Flybus stop for Keflavík Airport?
The Flybus and Airport Express stop on Lækjargata, a short walk from the hostel. Journey time to Keflavík International Airport is approximately 45–55 minutes depending on the service. Coaches depart frequently and can be pre-booked online.