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The best cheap hotels in South Iceland

Check out our pick of great cheap hotels in South Iceland

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Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
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Set in Jökulsárlón, 11 km from Jokulsarlon Glacier Lagoon, Hótel Jökulsárlón - Glacier Lagoon Hotel offers accommodation with a fitness centre, free private parking, a restaurant and a bar. The accommodation provides a concierge service, a tour desk and luggage storage for guests. Best hotel we've stayed in Iceland, fantastic food, great amenities

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9.5
Exceptional
1,759 reviews
Price from
US$349
per night

Set in Höfn in the South Iceland region, REY Stays - House features a garden. This property offers access to a terrace, free private parking and free WiFi.

The apartment consists of 2 bedrooms, a living room, a fully equipped kitchen with an oven and a kettle, and 1 bathroom with a shower and a hair dryer. Towels and bed linen are featured in the apartment. The accommodation is non-smoking. Everything was so clean, the kitchen very well equipped and it was so cozy. We saw auroras.

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9
Superb
1,018 reviews
Price from
US$314
per night

Situated in Ölfus, 48 km from The Pearl, Hotel Kvika features accommodation with a garden, free private parking, a terrace and a bar. Located around 48 km from Hallgrímskirkja Church, the hotel with free WiFi is also 49 km away from Solfar Sun Voyager. Guests can use the sauna and the hot tub, or enjoy mountain views. The room was comfortable and cozy. The lobby has a coffee/tea station with biscuits and fruit available almost 24/7, which was a nice touch. The breakfast is really good. There are two hot tubs open until 10 pm, perfect for relaxing. The hotel itself feels very warm and welcoming, and since it’s located in a darker area, we were even lucky enough to catch some northern lights right from there!

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9.1
Superb
2,099 reviews
Price from
US$168
per night

Set within 41 km of Seljalandsfoss and 45 km of Thjofafoss in Hella, Loa's Nest features accommodation with seating area. Featuring a shared kitchen, this property also provides guests with a sun terrace. The guest house also offers free WiFi, free private parking and facilities for disabled guests. We loved this concept, own room and shared kitchen. Intresting meeting and conversations with people from all over the World.

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9.7
Exceptional
2,282 reviews
Price from
US$166
per night

Bjork Guesthouse, a property with a garden, is located in Laugarvatn, 25 km from Thingvellir National Park, 29 km from Geysir, as well as 39 km from Gullfoss Waterfall. This guest house provides free private parking and full-day security. Featuring family rooms, this property also provides guests with a picnic area. Perfect location for watching the northern lights. We saw them from the window, so we went down to the lake and also across the road was amazing

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9
Superb
1,243 reviews
Price from
US$113
per night

Set in Hvolsvöllur, 3.5 km from Seljalandsfoss, Paradise Cave Hostel & Guesthouse offers accommodation with a garden, free private parking, a terrace and a bar. The accommodation provides a shared kitchen, and luggage storage for guests. Just the perfect place in the perfect spot. Great to visit the south of the island, easy to find, calmed and perfect to relax. Nice staff and good food (both for breakfast and dinner).

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9
Superb
1,529 reviews
Price from
US$71
per night

Located in Hvolsvöllur and with Seljalandsfoss reachable within 22 km, Midgard Base Camp provides concierge services, non-smoking rooms, a shared lounge, free WiFi throughout the property and a terrace. Providing a restaurant, the property also has a garden, as well as a sauna and a hot tub. The accommodation features evening entertainment and a tour desk. This place is amazing. Very comfy. The sauna and hot tub are on the roof. The restaurant is open a little later than local places so we had some dinner after a long day of exploring. They also do daily excursions one can purchase, however we had a rental and were self touring.

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9.1
Superb
2,124 reviews
Price from
US$38
per night

Árbakki Farmhouse Lodge offers a hot spring bath and free private parking, and is within 18 km of Geysir and 28 km of Gullfoss Waterfall. Featuring a shared kitchen, this property also provides guests with a picnic area. Guests can make use of the sun terrace or the children's playground, or enjoy views of the mountain and river. The room was big, the location was beautiful! The breakfast was simple and delicious, the dining room is just gorgeous and it is available with the kitchen every evening (well equipped). The beds were the best thing :)

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9.3
Superb
1,379 reviews
Price from
US$180
per night

The family-owned Hótel Lækur is set on an Icelandic horse farm, between the Golden Circle and the south coast. Hella is 10 minutes’ drive away. It offers a sun terrace and a guest lounge.

The bright, modern rooms feature wooden floors and private bathrooms. Some include either a terrace or balcony. The surrounding views take in the Hekla and Eyjafjallajökull volcanoes. Lovely quiet area and theres a river right by the hotel. Very comfortable.

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9
Superb
1,250 reviews
Price from
US$251
per night

This family-run property is 400 metres off Route 1 and 15 km from Selfoss. It offers free Wi-Fi and a terrace. Homemade bread, jam and pastries are served for breakfast.

Guesthouse Bitra B&B’s simple rooms have either private or shared bathroom facilities. They provide views of Mount Hekla or the surrounding countryside. Breakfast was amazing, a lot of variety and really good. The staff was super nice. The beds very comfy and the shower pressure and temperature was perfect.

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9.3
Superb
1,221 reviews
Price from
US$155
per night

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