Loft HI Hostel

Loft HI Hostel is the city-centre hostel of Hostelling International Iceland, on Bankastræti, the short street that links Laugavegur with Lækjartorg square. Few budget beds in Reykjavik are as central: the shops, restaurants and bars of the old town are outside the door, and the main bus stops at Lækjartorg are a minute away.

The hostel offers modern dorms, private rooms and family rooms, with linen included. Each bed in the dorms has its own power outlet and light, and there are security lockers, a guest kitchen for self-catering, bicycle parking and free wifi. Children under 12 cannot stay in shared dorms, while guests aged 12 and over can share a dorm with a guardian, and cots are available for families. The building is wheelchair accessible. Check-in is from 15:00 and check-out by 11:00.

The social side is a big part of Loft. It has a bar, a café and a restaurant, a daily happy hour, and a programme that includes live music, karaoke, pub quizzes, board games, group meals and food pop-ups. The rooftop terrace, looking over the rooftops of central Reykjavik, is a fine spot in the long summer evenings. Loft also takes sustainability seriously: it holds the Nordic Swan Ecolabel and offers carbon-offset stays, and it provides free earplugs and hairdryers.

The hostel suits solo travellers, budget-conscious couples, families on a tight budget and young groups who want to be in the middle of things. The trade-off for the location is noise at weekends, when Bankastræti and Laugavegur are busy late into the night, so use the earplugs. Booking well in advance is wise for summer, and private rooms sell out first.

Members of Hostelling International may be entitled to a discount, so bring your membership card if you have one. Guests travelling in winter will appreciate the central position, since the shortest walk home is welcome on cold, icy evenings.

Keflavík Airport is around 50 kilometres away and the FlyBus serves the city, with the BSÍ bus terminal within walking distance. There is no on-site parking; drivers are directed to the city car parks nearby, with the Traðakot car park recommended. Hallgrímskirkja, Harpa and Tjörnin are all within about ten minutes on foot.