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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. One of the best hotels I've ever had the pleasure of staying. Gorgeous architecture combined with a beautiful view from all the rooms. Amazing facilities both in the room as well as in the hotel. Wonderful hot tubs with an amazing outside sauna. Had the luck to see the northern lights as well. Very kind and helpful staff and comfy beds. A bit pricey, but definitely worth every penny.

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9.5
Exceptional
1,821 reviews
Price from
US$339
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
1,038 reviews

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. Excellent quiet location, comfortable beds, clean room, great breakfast and other hotel facilities (they do have an outdoor tub, but we didn't try it, maybe next time). Also we loved the little orangery where you can sit and have a snack and glance outside at the gorgeous Icelandic scenery. Should also be great for seeing the aurora. The hotel staff is great and provide you with excellent tips for your travels (we got a great tip on where to purchase real quality wool garments, thanks again!)

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9.1
Superb
2,052 reviews
Price from
US$163
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. Cozy accommodation with clean room and shared kitchen. Friendly staff making waffles in the morning.

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9.7
Exceptional
2,295 reviews
Price from
US$154
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 convenient location and everything is well maintained.

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9
Superb
1,264 reviews
Price from
US$87
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. Friendly staff, amazing facilities and loved that it has hot tube and sauna

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9.1
Superb
2,115 reviews
Price from
US$37
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. Breakfast was simple but great and the location was perfect

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9.3
Superb
1,378 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. Very nice and cosy location off the beaten track. Stayed in the larger cabin, good for 3 but could have easily accommodated more people. Nice view to the river and sunset. Nice dinner and breakfast. Very welcoming and helpful staff. Lost a charging cable at a previous location and front desk were able to help. We definitely enjoyed staying and will come again another time !

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9
Superb
1,240 reviews
Price from
US$250
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. Very clean and comfortable, the rooms were small but nice, shared bathrooms were always available, excellent WiFi and outstanding breakfast with smoked salmon and everything else! Close to Selfoss’ restaurants and supermarkets.

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9.3
Superb
1,219 reviews
Price from
US$154
per night

Free WiFi is offered throughout Farmhotel. Free parking is also available on site.

Efstidalur Farmhotel has Icelandic horses for hire, which is an ideal way to explore the surrounding countryside. Lake Laugarvatn is 12 km away. Very clean, comfortable, cozy rooms, perfect breakfast. Good value for money

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9
Superb
1,034 reviews
Price from
US$149
per night

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