Follow the signs from the N1 to find Höfn’s sole budget option, hidden away in a residential area. It’s a sprawling, dated space (a former aged-care home) that’s usually bustling with travellers in summer. It has the requisite facilities (kitchen, laundry) but no lounge areas. Non-members pay an additional fee (800kr); linen is included in prices.
HI Hostel
Southeast Iceland