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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. location spa and snow mountain

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9.5
Exceptional
1,823 reviews
Price from
US$340
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
1,038 reviews
Price from
US$290
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. 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
2,293 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 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
1,265 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. 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$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. The location (beauty of the nature), the staff, the cosiness and the warm feeling of the cottage room and the norhtern lights!

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9
Superb
1,239 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
1,218 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. The rooms were really nice and we were able to see the northern lights just outside. Perfect!

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9
Superb
1,035 reviews
Price from
US$149
per night

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