Best for: Solo travelers, groups of friends, families
On-site amenities: Bar/lounge, restaurant, performance space, library, Wi-Fi, ocean-view rooms
Pros: A high-quality hostel that blurs the line between hostel and hotel in a great location in town at a reasonable rate.
Cons: This property is designed around its communal spaces and experiences, which might not be desirable for some travelers right now.
Don't be scared of the word hostel. This isn't the kind of gritty place you stayed while studying abroad. We included it because it's no secret that traveling to Iceland can be a pricey proposition, so for a budget-friendly option, you can't do much better than Kex Hostel.