Best Party Hostels
in Reykjavik

Reykjavik Loft HI Hostel

At €42 a night and rated 9.4, Reykjavik Loft HI Hostel has a rooftop terrace, a combination that narrows the field in Reykjavik. Kaffibarinn on Bergstaðastræti 1, 101 Reykjavík. A basement club with a strict door policy: dress sharp. The hostel runs karaoke nights, useful for people arriving without a plan. The main strip for nightlife, lined with bars, clubs, and souvenir shops. Laugavegur runs from Hlemmur bus station to the old harbour.

Kex Hostel Reykjavik

Reykjavik’s nightlife kicks off late and runs hard: most clubs don’t fill until after midnight, and the action spills into the small hours. Kex Hostel Reykjavik is in Laugavegur, which puts it at the start of that circuit. Kaffibarinn on Bergstaðastræti 1, 101 Reykjavík. A basement club with a strict door policy: dress sharp. Lebowski Bar on Laugavegur 20a, 101 Reykjavík is the fallback option if the first place is packed. At €29 a night and rated 9.2. At 9.2, it's near the top of Reykjavik's hostel field without being the standout leader.

Reykjavik City HI Hostel

Reykjavik’s nightlife kicks off late and runs hard: most clubs don’t fill until after midnight, and the action spills into the small hours. Reykjavik City HI Hostel is in Laugavegur, which puts it at the start of that circuit. Kaffibarinn on Bergstaðastræti 1, 101 Reykjavík. A basement club with a strict door policy: dress sharp. Lebowski Bar on Laugavegur 20a, 101 Reykjavík is the fallback option if the first place is packed. At €31 a night and rated 8.7. The 8.7 score is solid: a hostel that does the basics well without promising too much.

Bus Hostel Reykjavik

Bus Hostel Reykjavik is a great place for those looking for a great experience for a low price. The hostel has dorms that can receive four, six, and ten people. As well, you can expect many amenities, like a bar area, or the Boogie Wonderland, where you can socialise and meet other travelers. Besides the chance of playing games you can also take a 10-minute walk to the center of Reykjavik.

Laugavegur

The main strip for nightlife, lined with bars, clubs, and souvenir shops. Laugavegur runs from Hlemmur bus station to the old harbour. Most hostels sit within a 10-minute walk, and the street is pedestrian-friendly after 6 PM. Expect crowds, street performers, and the occasional drunk local.

Austurstræti

A short street near the harbour, packed with pubs and happy-hour spots. Austurstræti is quieter than Laugavegur but gets rowdy after midnight. The English Pub and Micro Bar are here, and it’s a 5-minute walk from Loft HI Hostel.

Grandi

A harbour-side area with seafood restaurants and a few late-night bars. Grandi is a 20-minute walk from Laugavegur or a 10-minute bus ride. It’s quieter, but places like Bryggjan Brugghús stay open until 1 AM and serve local craft beer.

A basement club with a strict door policy: dress sharp. Plays indie, techno, and hip-hop. Entry is 2,000 ISK (£11) after midnight, but hostel pub crawls often include it for free. Gets packed by 1 AM, especially on Fridays when locals turn up.

A cosy spot for cocktails and craft beer. Happy hour runs 4–7 PM with two-for-one drinks. The White Russian is a must: expect to pay 1,500 ISK (£8.50) full price. Live music on Thursdays, but arrive early for a seat.

The hostel’s bar is open to all and draws a mix of travellers and locals. Beer costs 900 ISK (£5) all night, and the kitchen serves burgers until 10 PM. Live jam sessions on Wednesdays: bring your own instrument if you’ve got one.

A food hall by day, a club by night. The downstairs bar, Flotti, plays house and disco until 3 AM. Entry is free before midnight, 1,500 ISK (£8.50) after. The crowd is mostly 20-somethings, and it’s a 10-minute walk from Laugavegur.

A rowdy pub with darts, pool, and £6 pints during happy hour. Gets loud after 10 PM, with football on the TVs and shots for 1,000 ISK (£5.60). A good spot to start the night before heading to a club.

Perched above Loft HI Hostel, this bar offers views over the city. Beer is 1,000 ISK (£5.60), and the hostel’s pub crawl starts here every Friday at 9 PM. The crowd is mostly backpackers, and the vibe is friendly but low-key.