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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
1,674 reviews
Price from
US$396
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. Bed is very comfortable, shower a bit tricky to mount but good amount of water coming from it. Big room and there were coffee, hot chocolate and cookies self-serviced all day.

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9
Superb
2,159 reviews
Price from
US$171
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. Homey like our home and friendly staff.

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9.7
Exceptional
2,293 reviews
Price from
US$223
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. Very friendly staff, clean and comfortable rooms and shared facilities. Good dinner and breakfast.

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9
Superb
1,603 reviews
Price from
US$79
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. The staff were very friendly, and the room was neat and clean. The hot tub and sauna were a fantastic experience, adding a great touch to the stay.

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9.1
Superb
2,152 reviews
Price from
US$52
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. Very friendly girl working there, clean and tidy house. Very nice breakfast.

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9.2
Superb
1,388 reviews
Price from
US$182
per night

Welcome to Aurora Lodge Hotel, where adventure awaits!

Our complex of 8 charming buildings sits right on the banks of the East Rangá River, just a stone's throw from the Icelandic Route 1 (Ring Road) and 2km from Hvolsvöllur.

Keep connected with our free Wi-Fi and enjoy peace of mind with our free parking. Clean, beautiful surroundings, comfortable, nice staff

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9.4
Superb
1,075 reviews
Price from
US$319
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. Rural and authentic, family run. Fantastic location for the northern lights.

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9
Superb
1,236 reviews
Price from
US$226
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 breakfast was exceptional!!

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9.2
Superb
1,196 reviews
Price from
US$156
per night

This boutique hotel is peacefully situated in the South Iceland, in the village of Kirkjubaejarklaustur, a 1-hour drive from Skaftafell and Reynisfjara Black Beach, and 15-minutes drive from Fjaðrárgljúfur canyon and Laki Craters. All rooms include a flat-screen TV, private bathrooms with premium bathroom amenities, Nespresso coffee-machines. Nice quiet warm room. Breakfast was good, polite staff, would stay again. The restaurant was expensive for dinner.

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9
Superb
1,279 reviews
Price from
US$366
per night

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