Affordable, tidy hostel -- a 10-minute drive to downtown Reykjavik
Dorms available for four to 12 people (some include linens and towels)
Private rooms with TVs and desks
Roof terrace, garden, and free BBQ facilities
Restaurant serving Icelandic food and continental breakfast for a fee
Fully equipped kitchen to prepare food, plus free tea and coffee
Dry cleaning and laundry facilities (for a fee)
On-site car, scooter, and bike rental -- plus free self-parking
Wi-Fi is free throughout
Dorms rooms and many private rooms share bathrooms
Cannot easily walk to downtown Reykjavik
Dorms, while modern looking, are the definition of spartan
Fees for towels and linens with many bookings
No elevator
The Capital-Inn is a 30-room budget hostel offering shared dorms and private bedrooms, around a 10-minute drive to downtown Reykjavik. The decor is modern and functional, from the communal kitchen to the rooms. The on-site restaurant and bar is a highlight, with its local Icelandic menu, and the kitchen is spacious and well equipped, with large appliances and dining-hall style seating. There’s a lounge with flat-screen TV and pool table, plus handy extras like a laundry area and a pleasant garden with picnic tables. Keep in mind that breakfast isn't included in rates. As an alternative, Bus Hostel Reykjavik is another budget-friendly option, though it adds a free light breakfast and has a more central location. However, rates there will be higher.
Disclaimer: This content was accurate at the time the hotel was reviewed. Please check our partner sites when booking to verify that details are still correct.
Scene
Clean, communal hostel with pleasantly up-to-date interiors and a relaxed vibe
The hostel was opened in 1999 and has a pleasantly modern style, despite being the definition of basic. As it's farther from the main downtown area, it provides a quiet retreat from the city buzz -- though urban chaos isn't exactly the name of the game in Reykjavik. That distance does mean that there's a more communal vibe here, though, as nearby distractions are few. The lounge is small and the kitchen is well equipped, with large dining-hall tables and rows of seats translating to lots of opportunities to hang out with fellow guests. Those who wish to escape can head outdoors and enjoy the rooftop terrace, garden, and picnic areas with free BBQ equipment. Given the type of property, it’s no surprise that singles and couples are common at the Capital-Inn, but small groups and families often pass through as well.
Location
In a low-key residential area, a 10-minute drive south of downtown Reykjavik
While rates here are low, the hostel is unfortunately not within an easy walk of downtown Reykjavik. Depending on the destination, the trip to the city center takes around 10 minutes by car. More specifically, it’s an eight-minute car or cab ride to the Museum of Iceland, seven minutes to Hallgrimskirkja Cathedral, nine minutes to the Sun Voyager sculpture and Shore Walk, and 11 minutes to the Aurora Museum. The Icelandic Parliament building can also be reached in nine minutes by car, and the famed Nautholsvik Geothermal Beach is just an eight-minute drive away (or 20-minute walk for more adventurous visitors). Closer at hand is the Perlan restaurant and landmark, which is a 15-minute walk away -- hop on-hop off city tour buses stop there. The airport is 40 minutes away by car or cab.
Rooms
Modern, no-frills dorms or private rooms with free Wi-Fi; many share bathrooms
The hostel has 30 rooms ranging in size from shared dorms (four to 12 people), to doubles, triples, and twins. There's even the option of a one-bedroom apartment. All are similar in style, with plain walls and a splash of purple in the cushions, throws, and some seating. The rooms are basic, and the larger dorms have bunks, while the smaller shared rooms have individual beds. Dorms and single rooms include washbasins and some private rooms have TVs and clock radios. Wi-Fi is free throughout the hostel. Keep in mind that rooms closest to the main road do suffer from some traffic noise. Additionally, linens and towels come with fees for most guests staying in dorms. Most rooms have shared bathrooms, but some private rooms include en-suite bathrooms. Bathroom facilities are basic, and include shower cubicles and standard sinks. Wall-mounted hairdryers are provided in most.
Features
Rooftop terrace, large communal kitchen, and on-site restaurant and bar
Features here are pretty standard for a hostel, though some are a bit of an upgrade from typical budget-property offerings. The rooftop terrace and outdoor space is a bonus, and the restaurant is lovely, serving an ever-changing menu of traditional Icelandic fare. A continental breakfast of meats, cheese, fruit, cereals and yogurt is available for a fee. The kitchen is large and well equipped, with two separate workstations that have stoves, ovens, microwaves, and a large fridge for food storage. There's also free tea and coffee in the common areas throughout the day. The lounge has a large flat-screen TV with multiple channels, and there’s a pool table. The laundry machines are a helpful addition as well. Guest can self-park on-site free of charge and without prior reservation -- and bike, moped, and car rentals can be arranged by staff. Airport transfers can be arranged (for a fee) and staff can assist with booking tours and tickets. Free Wi-Fi is available throughout the hostel.
