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The best cheap hotels in West Iceland

Check out our pick of great cheap hotels in West Iceland

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Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
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Facing the seafront in Búðardalur, The Castle features a garden and barbecue facilities. The property has sea and mountain views. There is a sun terrace and guests can make use of free WiFi, free private parking and an electric vehicle charging station. The stay absolutely exceeded our expectations. We booked a cabin for a one-night stay after our long road trip from the northern region. The staff was exceptionally friendly; she even introduced us to the charming small town and the information about the stores and restaurants that are still open for business during winter. If you prefer cooking, there is a well-equipped kitchen and a lovely greenhouse available for shared use. Some comments mentioned that the room was too small. While it is true, it was more than enough for just sleeping. The beds (and the pillows) were the most comfortable ones we had during our 16-day trip in Iceland. We would absolutely recommend this place to others who are planning to visit the Westfjords and are looking for a convenient stop on the way to the west side. Oh - and the kind staff even remind us to go out to catch the stunning northern light! :D

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9.2
Superb
1,296 reviews
Price from
US$114
per night

Peninsula Suites is located in Hellnar. This property offers access to a balcony, free private parking and free WiFi.

The aparthotel with a terrace and sea views features 1 bedroom, a living room, a flat-screen TV, an equipped kitchenette with a microwave and a toaster, and 1 bathroom with a walk-in shower. Towels and bed linen are provided in the aparthotel. This aparthotel is non-smoking and soundproof. For the first time in my life, I didn’t want to leave a place. Péninsula Suites is simply magical. The view is absolutely breathtaking — we stayed in Suite 1, which I truly believe offers the best view I’ve ever seen. Being there felt like stepping out of this world. It’s the perfect place to disconnect completely and reconnect with nature, the sea, and even the sound of the seagulls. I’ve never felt so light, so peaceful, so far away from the noise of everyday life. The interior is beautifully designed with incredible attention to detail. Every material is top quality — even the kitchen towels and bed linens. The lighting, the layout — everything has been so thoughtfully curated. I’m 100% coming back, and next time for a longer stay. This is, without a doubt, the best place I’ve ever been. I recommend, recommend, and recommend again!

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9.8
Exceptional
139 reviews
Price from
US$337
per night

Hotel Stafholt has a garden, terrace, a restaurant and bar in Varmaland.

At the hotel, the rooms are equipped with a wardrobe. With a private bathroom fitted with a shower and a hairdryer, rooms at Hotel Stafholt also feature free WiFi, while some rooms also feature a mountain view. All guest rooms will provide guests with a desk and a kettle. No television, no desk in bedroom no surface in bathroom, my toilette had to on the floor in bathroom. Absolutely amazing view all round.

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9.2
Superb
961 reviews
Price from
US$196
per night

The Guesthouse at Dynjandi Falls is located in Bíldudalur and features a private beach area, an open-air bath and a shared lounge. This beachfront property offers access to free WiFi and free private parking. The guest house has a hot spring bath and a shared kitchen. Amazing location, right on a spectacular fjord. Excellent hosts, beautiful guesthouse and facilities.

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9.5
Exceptional
104 reviews

Set in Grundarfjordur in the West Iceland region, Hafnir offers accommodation with free WiFi and free private parking.

The apartment consists of 1 bedroom, a living room, a fully equipped kitchen with a dishwasher and a coffee machine, and 1 bathroom with a walk-in shower and a hair dryer. Towels and bed linen are offered in the apartment. The property offers sea views. Good view from the apartment and good location. Supermarket, cafes, and Kirkjufell are all nearby.

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9.4
Superb
187 reviews
Price from
US$256
per night

A recently renovated homestay set in Borgarnes, Apartment Fernsicht features a garden. The property features sea and mountain views. The accommodation offers a shared kitchen and private check-in and check-out for guests. So clean, very spacious rooms and close to town. Lovely host too who went out of her way to make us feel welcome

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9.5
Exceptional
100 reviews
Price from
US$175
per night

Set in Reykholt in the West Iceland region, Night & Day lodge - glass roof with hot tub features accommodation with access to a hot tub. This property offers access to a patio, free private parking and free WiFi. The property is non-smoking and is situated 36 km from Bjarnafoss. The property was very clean and cozy and had all the cooking essentials. The geothermal hot tub was a bonus :) perfect for a night in!

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9.4
Superb
153 reviews
Price from
US$367
per night

A recently renovated guest house set in Birkimelur, Strönd Guesthouse features barbecue facilities. This beachfront property offers access to a terrace, free private parking and free WiFi. The guest house features a hot tub and a shared kitchen. Hótel is small but all facilities are quite new and modern. The shared kitchen has new kitchenware and very convenient compared to other hotels that shared kitchen provided very old and not so clean kitchenware. It is located in remote area so it is quite peaceful and beautiful scenic view. We are happy there is very good warm pool nearby. The pool is cozy and not crowded at all.

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9.1
Superb
398 reviews

Situated in Borgarnes in the West Iceland region, Mófellsstaðakot has a patio and mountain views. The property features river views. There is a sun terrace and guests can make use of free WiFi, free private parking and an electric vehicle charging station. The cabin was perfect! It was one of our favourite spots of our holiday, just because of the design. The visit from the doggos were also a treat, however they do tend to be a bit pushy and want to come into the units haha. The location would also be perfect to see the lights, however, we had cloudy skies.

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9.5
Exceptional
338 reviews
Price from
US$222
per night

Located in Patreksfjörður, in a historic building, 23 km from Pollurinn, Pálshús is a guest house with a garden and shared lounge. There is a sun terrace and guests can make use of free WiFi and free private parking. Beautiful guesthouse by the sea. The rooms are bright and clean and the kitchen is well equiped.

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9.4
Superb
409 reviews
Price from
US$123
per night

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