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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. We loved breakfast buffet, everything was really delicious and fresh, various options to choose from. The room was clean, big and comfortable bed. The outdoor area with hot tubs and sauna were amazing. Staff were super helpful and friendly. Would recommend for sure!

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9.5
Exceptional
1,828 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. 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
1,041 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. Very nice stay, the room was very comfortable, the blackout curtains helped to get a good night's sleep. There was a coffee machine free of charge.

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9.1
Superb
2,047 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. Very spacious room, friendly environment, yummy pancake in the morning. Good spot for northern light.

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9.7
Exceptional
2,292 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. Nice and clean room, an experience to stay in this little village

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9
Superb
1,265 reviews
Price from
US$98
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. Everything was great. There was heating, sauna and hot tub, very special at cold days. There was special utilities that can dry your clothes and shoes, it was great. A small kitchen apart. You can serve a tea or coffee for free in the restaurant as a guest. Showers and toilets are common, but are several so you shouldnt stay to wait for a long. Rooms are common too, but your bed is closed with special curtains, so you are not disturbed. We like it even if it was a common room.

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9.1
Superb
2,118 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. We loved everything. The place is beautiful, very cozy, with a lot of charm & beautiful views in the room as well as the whole house. The common kitchen is super nice, well equipped, and a good place to talk with Anna. Breakfast was wonderful. And, there is a hot tub for guests.

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9.3
Superb
1,377 reviews
Price from
US$180
per night

Overlooking Höfn Harbour and Vatnajökull Glacier, this hostel features a guest kitchen, BBQ area and laundry facilities.

Staff can help arrange glacier tours, as well as boat and snowmobile trips.

Höfn Hostel offer some rooms with shared bathroom and some with private bathrooms. Some rooms are accessible. It’s clean, great facilities (kitchen, parking etc), have good beddings. The place also near the coast which means good for aurora hunting!

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9
Superb
2,840 reviews
Price from
US$52
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. Lovely secluded location near a stream and a small forest. Breakfast was excellent and the hotel staff was really pleasant and attentive. They also have Aurora wake up service option which is great!

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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. Love this charming place! The breakfast is nice and the staff really cares about doing a good job. I highly recommend this place.

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9.3
Superb
1,218 reviews
Price from
US$154
per night

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