Looking for affordable accommodation in Eastern part of Iceland and the East Fjords? Free wi-fi in all of them.

Looking for affordable accommodation in Eastern part of Iceland and the East Fjords? From remote coastal farms to peaceful fishing villages, discover the best HI Hostels in this undiscovered and beautiful region. Free wi-fi in all of them.
Visiting East Iceland reveals one of Iceland’s most underappreciated regions. Ring road travellers have mostly ignored the area, zooming through to get to either Mývatn in the north or Jökulsárlón to the south. But this has only helped the region create their own unique identity in the tourism world, focussing on slow, sustainable and authentic travel. From atmospheric farm stays to quaint towns scattered through the magnificent fjords, the hostels here are some of the coolest in the country. Here are the best hostels in the east for when you’re visiting this awesome corner of Iceland.
Seyðisfjörður HI Hostels – Historic Accommodation in Iceland’s Prettiest Village
Popular little Seyðisfjörður is one of the most visited towns in the East Fjords, and with good reason. Colourful prefabricated Norwegian houses are set against a dramatic mountain range on one side and a beautiful narrow fjord on the other. This is one of the country’s more atmospheric towns, the inspiring setting drawing all kinds of artistic and creative people to settle here. There are countless hiking trails to explore, some great places to eat and shop in town, and all of it covered with an excited traveller’s atmosphere thanks to the ferry that drops off hundreds of passengers from mainland Europe. The hostel in town is Hafaldan HI Hostel, one of the best places to stay in Seyðisfjörður. It has two different buildings in town.
The older of the two locations is called the ‘Harbour Building’, which was originally a dormitory for women working in the herring industry during the 1960’s. The atmospheric little hostel has a gorgeous view over the fjord from its dining room, a shared kitchen, and both dormitory space and private rooms for guests. There are also plenty of cosy little nooks for cuddling up with a good book and relaxing. It’s the more relaxing and quieter of the two options.
The second location of the Hafaldan Hostel is a larger option, known as the ‘Old Hospital’, a bright red house in the centre of town. After extensive renovations over the years, it’s become a favourite stop for hostel travellers in the east. Inside are lots of dorms, private rooms, cosy common areas and a big shared kitchen. Thanks to the people arriving and departing on the MS Norröna ferry to Denmark, it’s often quite busy. Guests have access to a sauna in the basement, the perfect way to relax after a hard day of hiking and exploring.
If you’re looking to spend some time away from crowds of tourists along the ring road and plant yourself in the middle of nowhere, then this hostel is for you. Located at the northern end of Fljótsdalur, one of Iceland’s longest glacial valleys, the Húsey HI Hostel is a lovely remote escape into the wilderness. Set in beautiful landscapes marked by flat farmland, wetland rivers, distant mountains, and a blissfully quiet beach of black sand on the coast, staying here is immensely rewarding. You’ll only be inspired to get out and explore the wonderful nature that makes up this quiet corner of Iceland.
The hostel sits between two rivers, Jökulsá á Brú and Lagarfljót river where walking trails reveal seals basking on the banks and abundant birdlife (the area is a designated bird sanctuary). During the winter months, there’s even a chance to spot some of the reindeer that make their home in the eastern region of Iceland. The owners of the hostel also operate horse riding tours, leading you to the best places to watch the seals and birds in the area. If you’re staying here, come prepared to meet with likeminded travellers; not many people make the effort to stay in such a remote spot, but those that do are all there for the same reason. Don’t forget to bring groceries as well, as this is truly the end of the road and there’s nothing else about. They offer pickup (for a small fee) from where route 1 intersects with route 925.
Reyðarfjörður in the East Fjords is a quiet but interesting little town, with a history rooted in Norwegian whale hunters and the British occupation during World War II. For a while it struggled as the fishing industry declined, but life (and jobs) have returned ever since the opening of an aluminium smelting factory. Today, the friendly town of Reyðarfjörður is a beautiful place to slow down and enjoy an authentically Icelandic lifestyle.
The best place to stay in Reyðarfjörður is at the host Marlin at Reyðarfjörður HI Hostel. Spread across three different locations in town, all buildings come with free wi-fi, guest kitchens, beautiful common areas and comfortable dorms and private rooms. Staying here for a few days is a great way to avoid the race around the ring road, slow down and appreciate the nature on show. There are plenty of opportunities through tours and hikes to head out and explore the surrounding fjord, mountains, and even the remote Eastern highlands – this is East Iceland at its most arresting.
Located in the same fjord as Reyðarfjörður, Eskifjörður is a remarkably quiet and peaceful place to spend some time away from the ring road. This is an ideal spot for travellers looking to undertake some hiking adventures into the nearby mountains, where quiet trails showcase amazing nature. The hostel here is the Eskifjörður HI Hostel (also known as Askja Guesthouse), a clean and welcoming stay with a large common area and kitchen for guests to use. Dorms are small but incredibly comfortable, and the quiet place is the perfect way to recharge after expeditions into the nearby mountains. Also sharing the building is an authentic Thai restaurant, Ban Chang - Hús Fílsins, which serves up fiery rice, noodle and curry dishes.
A single road travels the length of Eskifjörður and walking along it reveals a historic and distinctly Norwegian atmosphere. Rainy days can be spent at the fascinating Maritime Museum, housed in a historic black longhouse that was put there in 1816. The local pool, Eskifjörður Swimming Pool, is also one of the best in the entire country, with people coming here from the nearby towns to take a dip in the hot pots. But most importantly, the mountains are home to many trails of varying length and difficulty, and traversing the high heaths reveal great views over the fjord and surrounding mountains. After a day’s hiking, you can enjoy pizza and beers at the town’s local café, restaurant, and pub, Kaffihúsið.
Located just across the fjord from Djúpivogur is the Berunes Hostel, a great option for ring road travellers looking for an authentic stay. Set in a beautiful little area of Iceland, staying here for a few days really encourages travellers to slow down and appreciate the stunning Icelandic landscapes. This Icelandic farm comes complete with its own ancient church, the renovated buildings nestled between gorgeous mountains on one side and seafront on the other. The original character of the farmstead has been retained despite the renovations, and guests get to enjoy the common space, kitchen, and an onsite café. This hostel also has one of the best breakfasts on offer in Iceland, so don’t forget to treat yourself to the pancake breakfast. 
There are plenty of hiking opportunities in both directions: Mt. Steinketill provides a healthy challenge with outstanding views of the farm, whereas strolls out to the seaside reveal gorgeous rock formations and plentiful birdlife. Vegetarians and vegans rejoice, as the café and restaurant at the next farm over, Havarí, is one of the only spots on the island where you can get a vegan hot dog. The space also doubles as a concert venue, so make sure to check out if there are any gigs on during your stay. The nearby town of Djúpivogur is Iceland’s first designated ‘slow town’, encouraging visitors to slow down and connect with the region’s nature, food, and people. 

James Taylor is a travel journalist from Australia who lived in Iceland for three years.

Falling in love with the country, he began to write about his travels for magazines and websites in Australia, Europe and the U.S.A.