Stays in Iceland
Budget & guesthouse · Ísafjörður

Best Budget Stays in Ísafjörður, Iceland

Ísafjörður is the main town of the Westfjords, set beside Skutulsfjörður with mountains rising straight behind it, and the stays tagged budget here are a short list: Mánagisting Guesthouse, Isafjordur Hostel and Guesthouse Gamla. All three share their bathrooms, all three have a kitchen or lounge you can use, and none is a hotel in the usual sense. I do not show rates on this page, so the label tells you the type of stay, not a price comparison. I describe what each one offers, so you can decide whether shared facilities suit your trip.

Ísafjörður is a small fishing and cultural town, the capital of the Westfjords, with a harbour, a heritage museum, cafés and mountains that close the view on three sides. It is quiet in the evening and easy to cross on foot. Budget stays here are about a kitchen, a lounge and a bed, with the fjord and the mountains as the main attraction.

3 staysUpdated October 11, 2026

Where to stay

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Shared bathrooms, kitchens and balconies

Budget in Ísafjörður means guesthouses and a hostel with shared bathrooms, a shared kitchen and a lounge, rather than hotels with private bathrooms and a restaurant. The trade-off is simple: you give up a private bathroom and gain a kitchen, a laundry room in one case and a local, informal atmosphere. Because rates change with dates and demand, I leave prices to the booking page and describe the practical details.

Mánagisting Guesthouse is the most reviewed of the three, rated 7.1 across 592 reviews. It has bright, simple rooms with shared bathrooms and views of Skutulsfjörður, two TV lounges, a communal kitchen and a laundry room. Free WiFi and parking are available, and bicycles can be rented on site. It is also pet-friendly and described as a great option for families, couples and budget-conscious travellers. The score is the lowest here, which matches the simple rooms, so I would choose it for the kitchen, the laundry room and the fjord view rather than for comfort.

Isafjordur Hostel offers comfortable accommodation with a garden, a terrace and free WiFi, with a shared lounge, a kitchen and free on-site parking, shared bathrooms and parquet floors. It is described as well suited to couples and budget travellers, and it is rated 7.3 across 213 reviews. The listing also notes a geothermal hot spring nearby. It is a good pick for a traveller who wants a garden and a kitchen and does not mind sharing a bathroom, and it keeps the stay informal and flexible for a few nights in the Westfjords.

Guesthouse Gamla has the best score of the three, 8.0 across 211 reviews. It offers comfortable rooms with carpeted floors and shared bathrooms, and each room has a private balcony or terrace with garden or mountain views. There is also a sun terrace, a garden, free WiFi, a shared kitchen and a lounge. The private balcony is what sets it apart from the others, and I would choose it for a couple who want a place to sit outside with a view of the garden or mountains while accepting shared bathrooms.

All three stays share bathrooms, so the choice is about the extras. Mánagisting suits a traveller who wants a laundry room and bicycles to rent, the hostel suits someone who wants a garden, a terrace and a hot spring nearby, and Gamla suits a couple who want a balcony. If a private bathroom matters more than the price, I would look at hotels in town such as Hotel Isafjordur - Horn or The Ísafjörður Inn, which list private bathrooms, and compare the current rate on the booking page. Read the room details first.

A traveler's take

I would choose Guesthouse Gamla for a couple who want a private balcony and a quiet evening, Mánagisting Guesthouse for a traveller who wants a kitchen and a laundry room, and Isafjordur Hostel for someone who likes a garden and an informal atmosphere. My advice is to accept the shared bathrooms before you book, because all three share them, and to compare current prices on the booking page rather than rely on the label.

Guesthouse GamlaBudget & guesthouse
Ísafjörður

Guesthouse Gamla

★★★★★4.0(211)
Budget & guesthouse

Comfortable guesthouse with private balconies and mountain views

Why guests love it

Guesthouse Gamla in Ísafjörður has rooms with carpeted floors and shared bathrooms, each with a private balcony or terrace overlooking the garden or the mountains. Guests share a kitchen and a lounge and can use a sun terrace and a garden, with free Wi-Fi and parking. Guests rate it 8.0 across 211 reviews, and I would pick it for budget-minded travellers who want a balcony and a kitchen in the Westfjords.

4.0Guest score
Available
Isafjordur HostelBudget & guesthouse
Ísafjörður

Isafjordur Hostel

★★★★★3.7(213)
Budget & guesthouse

Comfortable hostel with a garden, shared kitchen, and free parking

Why guests love it

Isafjordur Hostel in Ísafjörður has rooms with shared bathrooms and parquet floors, a shared lounge and kitchen, a garden, a terrace, free WiFi and free on-site parking. It is aimed at couples and budget travellers, and a geothermal hot spring is listed nearby. With shared bathrooms it suits families who are comfortable with hostel living. Guests rate it 7.3 across 213 reviews, which is on the low side, so read recent comments before booking.

3.7Guest score
Available
Mánagisting GuesthouseBudget & guesthouse
Ísafjörður

Mánagisting Guesthouse

★★★★★3.6(592)
Budget & guesthouse

Simple guesthouse with fjord views, communal kitchen, and free parking

Why guests love it

Mánagisting is a guesthouse in Ísafjörður with bright, simple rooms and shared bathrooms, looking over Skutulsfjörður. Two TV lounges, a communal kitchen and a laundry room make it easy to live like a local, and bicycles can be rented on site. WiFi and parking are free, and pets are welcome. Guests rate it 7.1 across 592 reviews. Our editorial verdict: a plain, practical, budget-friendly base in the Westfjords, best for travellers who do not mind sharing facilities.

3.6Guest score
Available

Local tips

  1. 1All three stays share bathrooms, so check this suits your group before you book.
  2. 2I show no rates here, so compare the current price on the booking page and use this page for the type of stay.
  3. 3Mánagisting Guesthouse has a laundry room, two TV lounges and bicycles to rent.
  4. 4Guesthouse Gamla gives each room a private balcony or terrace, with garden or mountain views.
  5. 5Isafjordur Hostel lists a garden, a terrace and a geothermal hot spring nearby.
  6. 6Free parking is listed at Mánagisting Guesthouse and Isafjordur Hostel, which helps if you drive the fjords.

Related searches

Budget & guesthouse · Frequently asked questions

Guesthouse Gamla scores 8.0 across 211 reviews, the best of the three. Isafjordur Hostel scores 7.3 across 213 reviews and Mánagisting Guesthouse scores 7.1 across 592 reviews, the largest review base, so each has a solid number of guests behind its score.

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