Reykjavik – Loft HI Hostel is voted to be the best hostel in Iceland, and that's not just because of the excellent rooms it offers. Loft HI hostel is most well known for its beautiful rooftop terrace and the numerous events it hosts - from drag shows to karaoke nights, from live music events to various bring'n'buy markets. Most of them are free to join and perfect for budget visitors of Iceland.