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Hotels · Capital Region, Reykjavik

Loft Hostel

  • PriceISK 7,500-22,000 (~$60-176) per night, indicative double room
  • CategoryBudget
  • Rating★ 2.0

Loft Hostel is at Bankastræti 7 in the middle of central Reykjavik, Iceland, on the street that leads from the downtown old town up to Laugavegur. Bankastræti and the adjoining Laugavegur form the capital's main shopping and nightlife corridor, with boutiques, outdoor-clothing shops, cafés, restaurants and bars along the route. Austurvöllur square and the Alþingi parliament are a few minutes' walk, Harpa concert hall and the Old Harbour about ten minutes, and Hallgrímskirkja church roughly ten minutes uphill.

Hostel on Bankastræti with a rooftop bar and dorm and private options.

Loft Hostel is at Bankastræti 7 in the middle of central Reykjavik, Iceland, on the street that leads from the downtown old town up to Laugavegur. Bankastræti and the adjoining Laugavegur form the capital's main shopping and nightlife corridor, with boutiques, outdoor-clothing shops, cafés, restaurants and bars along the route. Austurvöllur square and the Alþingi parliament are a few minutes' walk, Harpa concert hall and the Old Harbour about ten minutes, and Hallgrímskirkja church roughly ten minutes uphill. The location makes the hostel one of the most central budget options in the city, ideal for visitors without a car. It is classed as budget, with indicative rates from about ISK 7,500 for a dorm bed to ISK 22,000 for a private double depending on season. Room types include Dorm Beds and Private Doubles, giving choices for solo travellers, couples and small groups. Amenities listed are a bar, Wi-Fi and a shared kitchen. The rooftop bar is the main feature, offering views over the rooftops of the old town and across towards the harbour and mountains on clear days, and it is a popular spot for an evening drink. The shared kitchen lets guests prepare their own meals, which helps keep costs down in an expensive city, and guests can find breakfast at cafés and bakeries on the surrounding streets. Service character is social and informal, aimed at backpackers, young travellers and budget-conscious visitors who value location over extras. Because the hostel is on a busy street with a bar on site, noise can be noticeable on Friday and Saturday nights, and light sleepers may prefer a private room or ear plugs. Many Golden Circle, South Coast and northern lights tours collect passengers from pick-up points a short walk from the hostel, and the Flybus terminal is reachable by taxi or bus.

Practical information for Loft Hostel · Last updated September 2026
Price ISK 7,500-22,000 (~$60-176) per night, indicative double room
Address Bankastræti 7, 101 Reykjavik

Room types

  • Dorm Bed
  • Private Double

Amenities

  • Bar
  • Wi-Fi
  • Shared kitchen

Location

Bankastræti 7, 101 Reykjavik

64.1469, -21.9335 View on map

Highlights

  • Rooftop bar with views over the old town
  • On Bankastræti between the old town and Laugavegur
  • Shared kitchen for self-catering
  • Dorm Beds and Private Doubles

Tips for visiting

  • Bring ear plugs, as weekend nightlife on Bankastræti can be loud.
  • Use the shared kitchen and nearby supermarkets to reduce food costs.
  • Visit the rooftop bar at sunset in summer for the best views.
  • Book dorm beds early for June to August, when central hostels fill up.

When to visit

Summer evenings are best for the rooftop bar, while winter offers lower rates and easy access to northern lights tours.

Accessibility

Wheelchair access and lift availability should be confirmed directly with the hostel, as the building is on a central street with upper-floor facilities.

Frequently asked questions

Where is Loft Hostel?

It is at Bankastræti 7 in central Reykjavik, between the old town and the Laugavegur shopping street.

Does the hostel have a bar?

Yes, it has a bar, and the rooftop bar is a main feature.

Are private rooms available?

Yes, the hostel offers Private Doubles as well as Dorm Beds.

Ready to book

Loft Hostel

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