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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
1,780 reviews
Price from
US$343
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. Excellent location! We stayed there for two nights and were fortunate to have experienced the northern lights both nights. Due to the location of the property, and the chilly winds, we could experience the northern lights from inside.

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9
Superb
1,027 reviews
Price from
US$312
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. Wonderful sauna and hot tub, and cosy shared areas. The food and drinks available at all hours was so welcome after a long day.

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9.1
Superb
2,088 reviews
Price from
US$165
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 like the location, the check-in procedure, the cleanliness of the whole building, the size of the room and toilet, kitchen, the dining area, etc. The sound proof is superb. The bed is so comfy. The waffle cooked by the owner was wonderful. The surrounding is beautiful.

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9.7
Exceptional
2,280 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. This place was great and definitely the cheapest one we had during our 12-day trip in Iceland. It was clean , spacious ,nicely decorated with a view to the lake. Location was very convenient near the golden circle sightseeing. The owners gave us a full bar of Icelandic chocolate as a welcoming gift. Very generous of them. We really hope you keep the price low and the rooms clean and neat in the future!

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9
Superb
1,247 reviews
Price from
US$95
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. Probably the cutest stay during our while trip! The staff was super nice and they served a really good lamb soup for a reasonable price. Everything was perfect!

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9
Superb
1,522 reviews
Price from
US$81
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. I loved the spa facilities; they were incredibly relaxing and well-maintained. The rooms were clean and comfortable, and the staff was very friendly and helpful. The stunning Icelandic landscape added to the overall experience.

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9.1
Superb
2,121 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. Beautiful vistas and quiet atmosphere.

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9.2
Superb
1,377 reviews
Price from
US$179
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. Good location, close to the Ring Road and yet can be a starting point for highland adventure. Food at the restaurant was also excellent.

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9
Superb
1,252 reviews
Price from
US$249
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. We had a great stay at the guesthouse on top of the hill. The location is great next to the cross roads of Golden Circle and the road to south coast. The facilities were in really great shape and the rooms were comfy and clean.

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9.3
Superb
1,220 reviews
Price from
US$154
per night

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