4 reviewed party hostels · from €28.96/night · Hostelworld rated
Reykjavik’s nightlife kicks off late and runs hard: most clubs don’t fill until after midnight, and the action spills into the small hours. Laugavegur, the main drag, is lined with bars and clubs where backpackers and locals mix over cheap happy-hour pints before the prices jump. The hostel scene is small but sharp: places like KEX and Loft HI pack in travellers with on-site bars, organised bar crawls, and kitchens where you can cook before heading out. Alcohol is expensive (think £9 for a pint), so pre-drinking in your dorm is standard practice. Most hostels sit within a 15-minute walk of Laugavegur, so you’ll never be far from the next round.
Rated by Hostelworld score · Prices per dorm bed per night
The Loft boasts a beautiful rooftop terrace where you can meet other guests and share travel stories. A huge on-site bar is hosting live music performances, karaoke nights, quiz nights and daily happy hours. Guests can also enjoy several common areas and daily social activities like arts and crafts events, yoga classes, and much more.
KEX is a great social hostel, located in the city centre near the bars, clubs, and music venues. Their on-site pub is always bustling and offers daily happy hours and great prices on drinks. Lounge area and heated outdoor patio are cool spots where you can meet other travellers and chill.
This is a huge social hostel, especially recommended for solo travellers and backpackers. Common areas are always crowded with people, happy to chat and make new friendships. The hostel features amazing café and bar where guests can enjoy local drinks and coffee. There is also a recreational room for sports activities, and a fully-equipped kitchen perfect for group dinners.
Bus Hostel Reykjavik is a great place for those looking for a great experience for a low price. The hostel has dorms that can receive four, six, and ten people. As well, you can expect many amenities, like a bar area, or the Boogie Wonderland, where you can socialise and meet other travelers. Besides the chance of playing games you can also take a 10-minute walk to the center of Reykjavik.
Organised nights out with a local guide
A 4-hour crawl visiting four bars and clubs, including Kaffibarinn and Hlemmur Mathöll. The tour includes a welcome shot, a free drink at each stop, and skip-the-line entry to clubs. Guides are local or long-term travellers who know the scene.
How Reykjavik's nightlife zones break down
The main strip for nightlife, lined with bars, clubs, and souvenir shops. Laugavegur runs from Hlemmur bus station to the old harbour. Most hostels sit within a 10-minute walk, and the street is pedestrian-friendly after 6 PM. Expect crowds, street performers, and the occasional drunk local.
A short street near the harbour, packed with pubs and happy-hour spots. Austurstræti is quieter than Laugavegur but gets rowdy after midnight. The English Pub and Micro Bar are here, and it’s a 5-minute walk from Loft HI Hostel.
A harbour-side area with seafood restaurants and a few late-night bars. Grandi is a 20-minute walk from Laugavegur or a 10-minute bus ride. It’s quieter, but places like Bryggjan Brugghús stay open until 1 AM and serve local craft beer.
Where the hostel pub crawls end up, and where to go on your own
A basement club with a strict door policy: dress sharp. Plays indie, techno, and hip-hop. Entry is 2,000 ISK (£11) after midnight, but hostel pub crawls often include it for free. Gets packed by 1 AM, especially on Fridays when locals turn up.
A cosy spot for cocktails and craft beer. Happy hour runs 4–7 PM with two-for-one drinks. The White Russian is a must: expect to pay 1,500 ISK (£8.50) full price. Live music on Thursdays, but arrive early for a seat.
The hostel’s bar is open to all and draws a mix of travellers and locals. Beer costs 900 ISK (£5) all night, and the kitchen serves burgers until 10 PM. Live jam sessions on Wednesdays: bring your own instrument if you’ve got one.
A food hall by day, a club by night. The downstairs bar, Flotti, plays house and disco until 3 AM. Entry is free before midnight, 1,500 ISK (£8.50) after. The crowd is mostly 20-somethings, and it’s a 10-minute walk from Laugavegur.
A rowdy pub with darts, pool, and £6 pints during happy hour. Gets loud after 10 PM, with football on the TVs and shots for 1,000 ISK (£5.60). A good spot to start the night before heading to a club.
Perched above Loft HI Hostel, this bar offers views over the city. Beer is 1,000 ISK (£5.60), and the hostel’s pub crawl starts here every Friday at 9 PM. The crowd is mostly backpackers, and the vibe is friendly but low-key.