This is, for our money, one of Iceland’s best hostels, and certainly its prettiest – it’s more like a boutique guesthouse than a budgeteer’s bunkhouse. Heiða, one of the friendly owners, has a creative streak put to good use in quirky, vintage-inspired decor. The seven-room hostel is in the town centre, in a white building called Gimli.
The owners have more accommodation options at their property known as Vegamót. Check-in for the hostel is generally done at Gísli, Eiríkur, Helgi, the owners' fabulous cafe.
HI members get a 10% discount.