Hostel Kex

This hostel is located in a refurbished biscuit factory by the sea in central Reykjavik (kex is Icelandic for biscuit).

The chic vintage design moves it a cut above the classic hostel; it’s also got its own library, gym and pizza restaurant, as well as a hair salon in the basement. You can also arrange tours here and hire bikes for exploring the city.

There are four-, six-, ten- and 16-bed dorm rooms available – with shared bathrooms – plus private family rooms and even two hotel-quality, en-suite rooms.

As hostels go, it’s top quality, and great value in an otherwise expensive city.