Reykjavik Hostels: Kex and Loft

If you're traveling solo or with friends, backpacking through Iceland, or just want to meet other travelers, Reykjavik has solid hostels. The two that actually stand out—the ones locals acknowledge and travelers recommend—are Kex Hostel and Loft Hostel.

Here's the thing about Icelandic hostels: they're expensive compared to European standards. Budget 6,000–10,000 ISK (£36–60) per night for a bed in a dorm, even at the "cheap" places. That's just Iceland's economy—labor costs are high, everything is imported, and hostels don't escape that. But if you want community and low prices, these two deliver.

Kex Hostel: The Social Powerhouse

Kex is the hostel most travelers mention when they say "I had the best night in Reykjavik." It's not the cheapest, but it's the most memorable. Located in the Old Harbor (101 postcode), it's walkable to everything.

The hostel itself: Housed in a converted biscuit factory (Kex literally means "biscuit" in Icelandic), it has personality. High ceilings, industrial vibes, and a proper bar downstairs where the hostel community actually hangs out. You're not staying in a converted hotel; you're staying in something with history.

Dorm rooms: 6–10 beds per dorm. Beds are comfortable (not luxury, but legitimate). Lockers are secure. Bathrooms are shared but clean. You might hear neighbors, but it's not claustrophobic.

Price: 7,500–9,500 ISK per night (£45–57) for a dorm bed. Private rooms available at 18,000–22,000 ISK (£108–132).

The vibe: Young, social, energetic. The bar downstairs is the real reason people love Kex. Travelers, locals, and visitors mix naturally. There's often live music or events. If you're solo, you'll have company. If you came with friends, you'll still meet others.

Food: Light breakfast included (bread, jam, coffee). Not lavish, but it covers basics. The on-site cafe serves lunch and dinner at reasonable prices.

Amenities: Free Wi-Fi, kitchen access (crucial for budget travelers), laundry facilities, tour desk for booking excursions.

Why it works: Kex understands that hostels are about connection, not just beds. The bar is the secret weapon. People don't just sleep here; they socialize here.

The catch: It's popular, meaning it fills up fast during peak season (June–August). Book weeks in advance if you're visiting then.

Who should stay here: Solo travelers, backpackers, anyone wanting social interaction. First-timers wanting the classic "hostel experience."

Pro tip: Arrive early evening, grab a drink at the bar, and chat with other guests. The best pub crawl invitations come from Kex. The hostel staff often organizes group outings.

Loft Hostel: The Quieter Alternative

Loft is the understated option—less famous than Kex, but solid. It's further from the harbor (postcode 104, closer to Perlan), which means it's quieter but slightly less "in the action."

The hostel itself: Modern, clean, minimalist design. Beds are comfortable. Rooms are a bit smaller than Kex, but they're not cramped. It feels more like a modern hotel hostel than a bohemian backpacker space.

Dorm rooms: 6–8 beds per room. Good lockers. Cleanliness is high. Bathrooms are shared and actually quite nice—proper showers with good water pressure.

Price: 6,500–8,500 ISK per night (£39–51) for dorms. Private rooms at 16,000–20,000 ISK (£96–120).

The vibe: More low-key than Kex. You'll meet people, but it's not a party hostel. Think "friendly coworking space" rather than "backpacker bar." If you want community but also actual sleep, Loft is your bet.

Food: No breakfast included, but there's a small kitchen. The neighborhood around Loft has cafes and shops, so buying breakfast and cooking is realistic.

Amenities: Wi-Fi, kitchen, laundry, tour booking desk.

Why it works: Loft is reliable and honest. It does exactly what it promises—comfortable bed, clean room, decent facilities—without trying to be something it's not.

The catch: It's quieter, which is a feature if you value peace but a bug if you're looking for nightlife. The location is less central (20-minute walk to harbor attractions).

Who should stay here: Travelers wanting comfort without chaos. People who want to meet other travelers but aren't trying to party every night. Anyone who values sleep.

Pro tip: Loft has good links to the Perlan area and pools. It's a better base if you're planning morning swims before exploring.

The Comparison That Matters

Kex wins if: You're solo, young, and want to meet people and have a social experience. You value being in the thick of downtown. The bar scene appeals to you.

Loft wins if: You want comfort and quiet as much as community. You'd rather have a good breakfast in a cafe than drink at a hostel bar. You're okay being 20 minutes from downtown.

Price: Basically identical (£39–57 range). Not a deciding factor.

Locations: Kex is downtown (best walkability). Loft is quieter but requires a bus or 20-minute walk.

Honest Assessment

Both are genuinely good hostels. You won't regret staying at either. The choice comes down to temperament: Are you here to party and meet backpackers (Kex), or are you here to visit Iceland and want comfortable accommodation with light social options (Loft)?

Real talk: Many travelers do 2–3 nights at Kex for the social experience, then move to Loft or a private Airbnb for the remainder of their stay. Both accommodate this perfectly.

Media Notes:

1. Kex Hostel bar – Alt: "Lively hostel bar with travelers and locals at wooden tables, beers and music" | Caption: "Kex's bar is the real reason people love staying here—where friendships happen."
2. Kex dorm room – Alt: "Six-bed dorm with individual lockers, comfortable mattresses, industrial ceiling" | Caption: "Kex rooms are basic but comfortable, with strong community vibe."
3. Loft Hostel modern lobby – Alt: "Clean, minimalist hostel reception with glass and modern furniture" | Caption: "Loft offers a cleaner, quieter hostel experience."
4. Loft dorm room – Alt: "Modern 8-bed dorm with individual lights, charging outlets, clean bathroom visible" | Caption: "Loft prioritizes comfort and cleanliness over social chaos."
5. Reykjavik Old Harbor from Kex – Alt: "View of harbor and boats from hostel window, sunset light" | Caption: "Kex's harbor location means you're literally in the city center."