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Hellissandur
Situated on western Iceland’s Snaefellsnes Peninsula, this former fish processing factory has been converted into a professional theatre and artsy hostel. Free WiFi access is available throughout.
With views of the surrounding countryside, dormitories come with simple retro-style furnishings and each shares a bathroom.
Freezer Hostel has a huge living room, with musical instruments, many books, games, coffee & tea, very warm and inviting, and immediately feels like home! I even made some music with one of the staff (flute & guitar), met many great people. This is probably the best (or one of the best) hostels in Iceland.