Location
If you're staying at HI - Laugarvatn Hostel, chances are you'll be arriving in Laugarvatn on your own. The town is very small and the hostel is on the southeast side of the main road (Route 37). The Hostelling International sign is plainly visible on the side of the building.
Amenities
This is a very well-kept, family-run hostel. Dorm rooms are very clean but leave little space remaining for tables or other furniture. The common room is perhaps one of the most comfortable areas in any hostel in Iceland. Except for its size, you really get the feeling you are visiting the home of friends or family. TV reception will probably be less than stellar. The kitchen may be a bit small for larger groups, but it is clean and well-outfitted with pans and utensils. Groceries can be purchased at a market/gas station a few blocks southwest down the main drag. An outdoor hot tub also allows for some relaxation after a long day. If that isn't enough, a few blocks away is Iceland's only geothermal sauna!
Atmosphere
Although it lies right on Iceland's Golden Circle, which is so popular with tour buses, this hostel is frequented by groups of native Icelanders -- some of them come for the horseback riding in the area. The hot tub, not the common room, seems to be the most relaxing location for meeting the other guests and immersing yourself (literally) in Iceland's people and culture.
Attractions
Laugarvatn has a strategic location for tourism in Iceland because it lies between some of the major attractions on the "Golden Circle." Thingvellir National Park has historic significance as the site where the first modern democracy was formed in 930 A.D. It is also of visible geologic significance as it sits directly on the American/European Rift. Further east, Geysir (the namesake of all geysers) and the waterfalls at Gulfoss complete the main attractions of the Golden Circle. A few miles to the south, the church at Skaholt provides man-made simplicity that complements the landscape well.
Price
Iceland is not a cheap vacation for most, so every penny counts. This hostel is competitively priced with other hostels and sleeping bag accommodations in the country, and is a definite savings versus a hotel room. It is not certain what other accommodations are even available in this small town! All in all, this hostel is a decent value and makes a great way station for travelers who want to explore the Golden Circle on their own and not from a tour bus!
— Exklusive Hostelz.com Übersicht
January 2008