The fabulously friendly family that runs this compact hostel is supremely proud of the heritage features dating back to the 1840s. Homey dorms have either six or 10 beds, while three wet-room showers have heated floors. Chill in the 1950s kitchen or on the deck – there's a positive vibe either way.
It's a bit hard to find; look for the yellow building on an internal courtyard tucked back behind Laugavegur.