Dalur - HI Eco Hostel
Iceland's most-reviewed hostel (2,626 reviews) — right next to Laugardalslaug pool, with bike rental, campsite access, and an on-site bar.
Dalur (formerly Reykjavik City Hostel) is the most-reviewed hostel in the city — 8.2 from 2,626 reviews, set next to Iceland's biggest geothermal pool and the family-activity park in Laugardalur. Bikes to rent, campsite next door, and a proper restaurant-bar on site. 15 min bus to Laugavegur, 12 min to Bus Stop 11 for Flybus.
Dalur sits inside the Laugardalur greenbelt — the biggest park-and-sport complex in central Reykjavik. The geothermal pool (Laugardalslaug), the Family Park and Reykjavik Zoo, the Ásmundarsafn sculpture museum, and the Reykjavik Campsite are all within a 10-minute walk; you are as far from Laugavegur as you can get and still be in the city. The hostel is HI-affiliated, eco-certified, and it's been open in one form or another since 1968 — which means it has the infrastructure that newer Reykjavik hostels lack: a proper restaurant, a bar, bike rental, laundry, luggage rooms, a reception that actually staffs 24 hours.
The 2,626 reviews averaging 8.2 reflect a hostel that's consistent rather than exceptional. The dorms are larger than the Scandi-design crowd (6, 8, even 10-bed rooms on some floors), the linens are fine, the bathrooms are shared and clean. What you actually come here for is the surroundings: you can swim laps in Iceland's best pool at 07:00, eat the hostel breakfast at 08:00, bike the 12-km Laugardalur-to-Grandi cycle path at 09:00, and be back for a late dinner at the on-site bar. Reviewers specifically mention 'microwaving Bónus ready-meals' in the kitchen, which is the Reykjavik budget hostel admission everyone makes honest here.
The trade-off is distance from the 101 bar scene. Laugavegur is a 12-min bus ride on Bus 2 or 14, or a 25-min walk. The Flybus stops at BSÍ and at Skógarhlíð rather than outside the hostel, so you'll have a 10-12 min walk from either. Reviewers flag this and buy it anyway because the package (pool, park, zoo, bikes, campsite, restaurant, bar, laundry all within 500m) is the most complete hostel ecosystem in the city.
- 01The Laugardalslaug pool is 3 minutes away — Iceland's biggest geothermal complex, and reviewers consistently rate this as the best thing about the stay
- 02On-site bike rental (€20/day) gives you access to the Laugardalur-Grandi 12km cycle path that no 101 hostel can match
- 03The on-site restaurant does a proper breakfast buffet at €13 (skyr, smoked salmon, rúgbrauð, eggs) — cheapest hot hostel breakfast in town
- 04Reykjavik Campsite is next door and many guests combine nights — tent when the weather is good (€18), hostel dorm when it's -5°C and raining (€48)
- Next door to Laugardalslaug — the biggest geothermal pool in Reykjavik (€11 entry, open until 22:00), a 3-minute walk from reception
- 2,626 reviews at 8.2 — the most-reviewed hostel in our Reykjavik set, which means this score is statistically bulletproof
- On-site bar and restaurant with breakfast buffet (€13) — the only hostel in our Reykjavik set with a proper sit-down breakfast
- Bike rental on site (€20/day), plus the Laugardalur Family Park and Reykjavik Zoo a 5-minute walk — the family-friendliest hostel in town
“Perfect environment. Great bed, reasonable price and incredible service. The Laugardalslaug pool next door is the best thing about Reykjavik and this hostel gives you 3-minute access.”
“Very clean and well maintained hostel with common areas. I loved getting various ready-meals from Bónus, microwaving them in the kitchen and eating by the pool park.”
“Personal was very helpful. Rooms and local are amazing. Kitchen was nice as well — big enough to cook a proper salmon dinner.”
- Laugardalslaug geothermal pool200 m / 3 min walk
- Reykjavik Family Park and Zoo400 m / 5 min walk
- Reykjavik Campsite100 m / 2 min walk
- Bus 14 stop (Sundlaugavegur)150 m / 2 min walk
- Laugavegur main drag2.8 km / 12 min bus
- Bónus supermarket (Fiskislóð)1.1 km / 14 min walk
