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Iceland hostel recommendations on Ring Road

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A group of 2-5 of us will be driving the ring road next summer after high school graduation. We probably will be camping at various places and may venture off the ring road as well.

Does anyone have good hostel recommendations for anywhere along the ring road (or anywhere else in Iceland)?

In particular, I know that I will be staying near Jökulsárlón Lagoon for at least one night, perhaps more.

We also may be looking for a place in London for 3 days but that is a more complicated question for a different thread.....

Thanks!

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