Hotels With Bar in Capital Region, Iceland

View just right above our hostel !!!! Staying at this hostel in Iceland was honestly unforgettable. The location alone makes it special — but what truly made it magical was seeing the aurora dancing right above the hostel rooftop. Stepping outside at night and watching the Northern Lights shimmer across the sky without even leaving the property felt surreal. The atmosphere was cozy and welcoming, and it had that perfect mix of comfort and adventure. After a long day exploring Iceland’s dramatic landscapes, it was amazing to come back somewhere warm and relaxed — and then be rewarded with a sky full of green lights. If you’re coming to Iceland hoping to see the Northern Lights, this place gives you front-row seats. I would absolutely stay here again. 🌌✨

I had a fantastic stay at Bus Hostel Reykjavik! The atmosphere was welcoming, but what truly stood out was the incredible staff. They were consistently friendly, helpful, and went above and beyond to make my trip easy. A huge highlight was their flexibility with my travel schedule. Even though I checked out at 10:00 AM, they graciously allowed me to hang out in the common areas until my 6:30 PM flight. This made my final day in Iceland stress-free and much more comfortable. Highly recommended for any traveler looking for great service and a hospitable vibe!

We paid an upgrade to a twin superior and had early access to the room which we were grateful for, following an early flight. Twin superior room was spacious, coffee machine, fridge and kettle provided, bathroom was great. Really comfy beds. Staff were fantastic and breakfast was superb, loads of choice. Would thoroughly recommend.

**100/100 - Excellent!** This place feels as warm and inviting as home. The location is easy to find, and the room is exceptionally clean and comfortable. The hot tub is a must-try! Breakfast features traditional Icelandic dishes with a great variety that truly fuels your journey. I highly recommend this stay!

The biggest plus of this hotel is its direct access to the airport bus. It's also quite convenient, about a 10-minute walk to the bus stop for all day tours. Across the street, there's a public bus that goes directly to Rainbow Street, the Cathedral, and other places, costing around 38 RMB (about 38RMB by credit card) per ride. Just a 5-minute walk to the left from the hotel entrance, there's a fairly large supermarket where you can buy bread, sandwiches, fruits, yogurt, etc. However, I really have to complain about the hotel rooms. The bathroom being small is one thing, but in the twin room, there wasn't even enough space for two suitcases. If we managed to open a suitcase, there was absolutely no room to walk. What's more, we had booked five consecutive nights and pre-paid the room fees through Trip.com. But on the third day of our stay, the hotel informed us they received a government tax adjustment notice and showed us a piece of paper, demanding we pay an additional tax. We were forced to pay an extra 27.5 euros, which is absolutely unreasonable!!

The location is convenient. There is a Xiaozhu supermarket downstairs. It is close to bus stop No. 9, which is convenient for local tour groups to gather and pick up. The room is clean. The counter staff provides early check-in service, but the room lighting is a little dim.

I want to give an objective review of this hostel. First, the pros: 1. The price is excellent. I stayed for five nights for just over 2000 [currency, e.g., ISK], which is very reasonable considering the prices in Iceland. 2. The communal kitchen and bar are very spacious and bright, making cooking very convenient. 3. The location is central; it's easy to walk anywhere within 15 minutes, and there are bus stops nearby. 4. The hostel has a minimalist, modern design, and the facilities are relatively new. The individual bed curtains provide great privacy. Now, a few areas for improvement: 1. There are a bit too few restrooms and showers, so sometimes you have to wait in line. 2. I really hope they could provide a female-only dorm, even if it's a multi-person room. My bed this time was near the door, and people were constantly coming and going in the middle of the night. Two guys snored loudly, which was incredibly disruptive, and the air quality also deteriorated. I was woken up three times in one night – it was a nightmare. 3. It would be good to separate the male and female bathrooms/showers. Having them mixed is indeed a bit unhygienic.

The room was exactly as pictured, and the location was fantastic, right in the city center with a bus stop just outside – very convenient for getting around. It came with a hairdryer and all the kitchen utensils you could need, making it perfect for group trips or family vacations. Definitely recommended! Plus, you can even see the Northern Lights from downstairs at the hotel.

The room was great, and the front desk service was excellent. Breakfast was superb! The only downside is that it's a bit far from the city center, so getting out for breakfast can be a trek. They even had oatmeal, which, as a Chinese person, brought tears to my eyes! 😄

Overall, I enjoyed the stay, but the fact that walls are paper thick and your next door room people alarm can wake you up is annoying. Also, the sound of the wind bashing against the room window (6 floor) was annoying too. Location is the definitively the best.