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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. The hotel is amazing with breathtaking views. The staff was very friendly. We love the jacuzzi, sauna, and to take a plunge in the little lake. Our staying at Glacier Lagoon Hotel was just lovely!

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9.5
Exceptional
1,774 reviews
Price from
US$348
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. We loved everything about the cabins! Very stylish, clean & cozy. the view in cabin 25 is great!

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9
Superb
1,026 reviews
Price from
US$315
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 recepcionist uncle was very kind, and the hot tub was very nice as well.

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9.1
Superb
2,092 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. The friendly staff, facilities, private bath, food in the morning. Great place to see northern lights

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9.7
Exceptional
2,278 reviews
Price from
US$177
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. Automated check in Always offering support.

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9
Superb
1,247 reviews
Price from
US$96
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. We got a warm welcome on arrival from Anaïs, the rooms were very clean, the common areas are well organized and there is a coffee machine. The breakfast was very complete. Highly recommended.

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9
Superb
1,523 reviews
Price from
US$70
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. Very clean, good location. Hostel beds had curtains covering the entire length. Had a hot tub and sauna. Staff were all super friendly. Awesome food at the restaurant

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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. Lovely stay and Anna was very helpful to guide us to the nearby attractions. Highly recommend.

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9.3
Superb
1,379 reviews
Price from
US$181
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. Super easy to find, perfect price to value ratio and great people running it

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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
1,220 reviews
Price from
US$155
per night

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