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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. Absolutely stunning location and the hot tub is amazing

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9.5
Exceptional
1,767 reviews
Price from
US$350
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. The cabin we had (for 4 people) feels brand new and is exceptionally clean. It was spacious and had nice little touches (who even needs a magnetic shoe-horn? :P and a dyson hair dryer!) Beds were comfortable, with space around to separate from the other houses. Scenery around is amazing, with the mountains as a backdrop.

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9
Superb
1,021 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. Everything in the hotel is perfect. The rooms are very clean, as are the bed linen and towels. Breakfast is very varied, always fresh and delicious. It is quiet and we felt like home. The people at the hotel reception are very nice.

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9.1
Superb
2,094 reviews
Price from
US$169
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. Loa's Nest was the perfect way to end our trip in Iceland. Their guesthouse had extremely easy check in. The entire facility was clean and equipped with everything and more. I would highly recommend this guesthouse for all types of travellers.

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9.7
Exceptional
2,278 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. The location is easy to find, there have restaurants and supermarket nearby.I would gladly recommend this guesthouse to anyone.Bathroom was super clean.Easy check-in. Everything works well.Gullfoss and Geysir can be reached in ~30min by car.The host gave us welcome Iclandic chocolate, which was a really nice surprise!

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9
Superb
1,247 reviews
Price from
US$114
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
1,523 reviews
Price from
US$72
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. We stopped at Midgard Base Camp for one night only and will remember this place, mostly because of an amazing staff that helped us plan out the day and see our first northern lights! If we can come back to Iceland, we will definitely stay here again! Perfect place to wash clothes and dry hiking shoes as well.

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9.1
Superb
2,121 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
1,377 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. The location is good for watching northern lights. Breakfast is good.

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9
Superb
1,247 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. The hosts were amazing. This was my first guesthouse experience and it exceeded my expectations. We got there and it was already dark. We noticed that the northern lights could be out and the hosts did whatever they could to help us see them. It was great! We were the only 2 people booked for the night but when we woke up there was this massive and delicious breakfast. I was astounded by all the different kinds of food they offered. I would stay here all nights if we weren’t going to drive around Iceland.

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

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