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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. Best place we stayed at during our trip. Everything was lovely, big comfortable room, the outside area was great, all very pretty, we just wished we stayed longer

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9.5
Exceptional
1,734 reviews
Price from
US$353
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. Comfortable and clean room, quiet place, very comfortable bed and pillows, friendly staff, tasty breakfast, nice terrace for the rest

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9.1
Superb
2,119 reviews
Price from
US$170
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. We loved this concept, own room and shared kitchen. Intresting meeting and conversations with people from all over the World.

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9.7
Exceptional
2,289 reviews

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
1,226 reviews
Price from
US$150
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. It was very clean, room was nice and close to the main waterfalls

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9
Superb
1,552 reviews
Price from
US$70
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 place was great, with lovely staff. The music show the hostel hosted was good fun as well.

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9.1
Superb
2,133 reviews
Price from
US$38
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. Lovely facilities, hygge, peaceful with river song to sleep

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9.2
Superb
1,392 reviews
Price from
US$180
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. The staff was the epitome of hospitality! Always smiling and welcoming!

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9.4
Superb
1,025 reviews
Price from
US$318
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 cottage was cozy. The staff were friendly.

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9
Superb
1,240 reviews
Price from
US$251
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 guesthouse provided an exeptional experience with its helpful staff and enjoyable amenities. The owners gave us some nice recommendations.The bathrooms as well as the room was/were very clean. The breakfast, featuring local and fresh ingredients, was a highlight. Additionally, the unique feature of being able to view the aurora directly from the property added a special touch to the stay. Recommended for those seeking a comfortable and memorable experience.

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9.3
Superb
1,216 reviews
Price from
US$227
per night

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