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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. Clean. Comfortable. Kind staff. Large rooms and bathrooms.

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9.5
Exceptional
1,764 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$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. It's close to Reykjavík , kind staff ,very clean and has sauna and jacuzzi.

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9.1
Superb
2,096 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. I really enjoyed my stay. The staff is amazing, they are super friendly and it was very nice to meet them. They offered waffles for the breakfast and they were incredible good. The location is good if you are doing the golden circle and heading south (Or the opposite). The house as good facilities to prepare dinner and is has a shared living room very cozy. The rooms it self are very clean and enjoyable. It was very good to rest there after a exhausting day.

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9.7
Exceptional
2,279 reviews
Price from
US$188
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. Very nice renovated room with fridge, kettle and tea/coffee. Super clean spacious bathroom. Locatiin easy to find, great detailed communication from owner made the stay excellent.

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9
Superb
1,244 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. Great vibe, super friendly staff, we felt very welcome and well taken care of. Loved the stay!

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9
Superb
1,524 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. Best hostel that we have stayed in Iceland. Best location, friendly and caring staffs, good price. Clean shower room, hostel as a whole. Big drawer to keep stuffs and not overcrowded room, maximum six people in our room. Good security from entrance, to door to dormitory space, to dormitory room.

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9.1
Superb
2,123 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. Its the Best place to stay in the golden Circle, the hot tub was incredible, we saw Amazon auroras, the owner was such a cool guy, the Breakfast was delicious. I would highly recommend it.

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9.3
Superb
1,377 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. Our room was lovely, warm and clean. We were super lucky to see the Northern lights there, magical moment ❤️

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9
Superb
1,248 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 guesthouse provided an exeptional experience with its helpful staff and enjoyable amenities. The owners gave us some nice recommendations.The bathrooms as well as the room was/were very clean. The breakfast, featuring local and fresh ingredients, was a highlight. Additionally, the unique feature of being able to view the aurora directly from the property added a special touch to the stay. Recommended for those seeking a comfortable and memorable experience.

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9.3
Superb
1,220 reviews
Price from
US$155
per night

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