Well-run hostel in the heart of Reykjavik offering both dorms and private rooms with clean facilities and a friendly atmosphere. Features fully equipped kitchen, cozy lounge, and outdoor terrace. Walking distance from Hallgrímskirkja, Laugavegur, and the main bus terminal.
Reykjavik Downtown Hostel stands at Vesturgata 17 in the 101 postal district, within the quieter western pocket of Reykjavik's old town, a short stroll from the Tjörn (the city pond) and the National Gallery of Iceland. The old harbour waterfront, with its whale-watching piers, sea-fishing restaurants, and the Saga Museum, is approximately 400 metres to the north. The nightlife and restaurants of Laugavegur are ten minutes on foot to the east, and Hallgrímskirkja church is reachable in around fifteen minutes by a gentle uphill walk through the oldest streets of the city.
The hostel occupies a converted building with period character — slightly irregular room layouts and wooden staircases — that gives it a warmer feel than newer purpose-built hostels elsewhere in Reykjavik. Accommodation options include dormitory beds across various room sizes (typically 4, 6, and 8-bed configurations) and private double rooms, making it suitable for solo travellers, couples, and small groups seeking affordable central accommodation.
A communal kitchen fully equipped with cooking facilities, utensils, and shared pantry staples allows guests to prepare their own meals — a significant budget saving in a city where eating out is notably expensive. The common lounge serves as a social hub where travellers exchange Northern Lights sightings, day-trip advice, and recommendations for cheap eats. An outdoor terrace operates in summer when the long daylight hours make evenings warm enough for outdoor socialising.
Laundry facilities, luggage storage, and lockers for valuables are available on-site. The hostel's western old-town location is somewhat quieter at night than hostels directly on Laugavegur or adjacent to Hlemmur, making it better suited to guests who want city convenience without late-night bar noise.
Prices are among the lowest in central Reykjavik, with dorm beds from around ISK 4,000–6,000 per night and private rooms from ISK 11,000–16,000 depending on season, offering strong value for the 101 location.
Amenities
- shared kitchen
- lounge
- free Wi-Fi
- lockers
- laundry
- terrace
Location
Vesturgata 17, 101 Reykjavík
64.1485, -21.9431 View on map
Highlights
- Prime old-town location 400 m from the old harbour and 10 minutes' walk to Laugavegur
- Dorm beds and private doubles in a characterful converted building in 101 Reykjavik
- Fully equipped communal kitchen — essential for keeping food costs low in expensive Iceland
- Outdoor terrace for summer evenings under the midnight sun
- Quieter old-town setting compared to hostels on the main nightlife strip
Tips for visiting
- Shop at Bónus supermarket on Laugavegur for budget groceries — it is the most affordable option near the hostel.
- Book well in advance for the summer high season (June–August) — the hostel's old-town location makes it highly sought after.
- The old harbour is walkable in five minutes; book a whale-watching trip early in the morning for the best sea conditions.
- Pack a padlock for the lockers; they are not always supplied at check-in.
- The Tjörn city pond is a five-minute walk and offers a peaceful morning stroll past resident swans.
Accessibility
The hostel occupies a converted period building with stairs throughout and no lift. Dormitory rooms are spread across multiple floors. Guests with mobility limitations are advised to contact the hostel before booking to assess suitability for their needs.
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Frequently asked questions
Are private rooms available at Reykjavik Downtown Hostel?
Yes, the hostel offers private double rooms in addition to shared dormitories, providing an option for couples or travellers preferring more privacy at budget-friendly rates.
How far is the hostel from the BSÍ coach terminal?
BSÍ bus terminal is approximately 1.5 km southeast of the hostel. The Flybus to Keflavik Airport departs from BSÍ; budget around 20 minutes on foot or take a short taxi.
Is there a curfew at the hostel?
The hostel does not operate a curfew; reception assistance and building access are available through the night.
Can guests use the kitchen at all hours?
The communal kitchen is generally available during daytime and evening hours; confirm exact access times with reception at check-in.