30.04.2025
Loft HI Hostel has been awarded Best Hostel in Iceland 2025 by HostelWorld! Having previously won the award in 2016, 2017, 2018, 2019, 2020, and 2024, this HI hostel is no stranger to excellence. So, what makes Loft HI Hostel the best hostel in Iceland?

Location, Location, Location

Located at Bankastræti 7, Reykjavík's bustling main street filled with shops and restaurants, the hostel sits right in the heart of the action. Just when you think it couldn't get any better, you discover the hostel's bar features a spacious terrace overlooking the entire downtown area. Not only are all of Reykjavík's must-see attractions within walking distance, but the hostel itself is a destination visiting! The terrace has become a local favorite for happy hour, and as soon as the first rays of sunshine hit Reykjavík, you can bet everyone flocks to Loft to grab a sunny spot.

 

Amenities

Since opening its doors in 2013, the hostel has undergone several upgrades to stay modern and welcoming. The rooms are well-maintained and secured with a unique code system, replacing traditional keys and making self-check-in a breeze. They're spacious and clean, each equipped with a private bathroom, while additional showers and toilets are available on every floor.

The fully equipped kitchen also features a charming little patio where you can enjoy breakfast with a view.

As a social hostel, Loft has greatly improved its lounge and bar areas. The cozy space is perfect for relaxing during the day or getting some work done with a good cup of coffee. Comfortable chairs, beanbags, and benches invite you to unwind after a day of exploring. The shelves are stocked with books and board games, making it easy to connect with fellow travelers.

The hostel is eco certified and proudly holds the Nordic Eco Swan label which ensures all the cleaning products and maintenance operations are sustainable.

 

 

Focusing on the Social Aspects

Recognized as one of the best spots to kick off the night in Reykjavík, you might even find more locals than tourists hanging out here. The bar draws a lively Icelandic crowd in the evenings-especially on weekends. Loft also has a rich history of hosting events, from concerts and karaoke to bingo, drink-and-draw nights, comedy shows, traveler meetups and just about any fun idea that comes along. This makes it perfect for connecting with others, whether you travel alone or in a group.

The Staff Makes the Difference

The hosts and bartenders at Loft are the heart and soul of the experience-adding the final touch that transforms a great stay into a memorable one. Their warmth, a wealth of local knowledge, and enthusiasm for connecting with travelers makes Loft feel less like a hostel and more like a temporary home away from home.
Each member of the team brings their own unique story and a shared passion for hospitality, creating an atmosphere that's as welcoming as it is inspiring. Whether it's offering insider tips on hidden gems around the city, recommending can't-miss activities, or simply sharing a conversation over a drink, they're always there to make your stay more personal.
What makes the team even more special is their international background-they're fellow travelers who understand what it means to arrive in a new city, craving both adventure and connection. With them, you don't just visit a place-you feel like a part of it.

Ready for your next adventure? Click here to secure your stay at Loft HI Hostel, your base for exploring, connecting, and experiencing the best of Reykjavík!

Want to see more?

Check out the vibes at Loft in this short video. Our rooftop, the views, the people, and that unique Reykjavik energy.

 

 

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See you soon!

HI Iceland