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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. Beautiful hotel, amazing views

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9.5
Exceptional
1,785 reviews
Price from
US$341
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 facilities, the location, the surroundings. It was very comfortable. We saw northern lights outside!

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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. beautifully decorated, comfortable, new, amazing staff. best stay we had during our trip in Iceland (7nights 7 different accommodations)

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9.1
Superb
2,088 reviews
Price from
US$164
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. Everyone was very friendly and helpful

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9.7
Exceptional
2,277 reviews
Price from
US$175
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. The room are very clean and easy to find the place is next the groceries restaurants and gas station

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9
Superb
1,248 reviews
Price from
US$113
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. We received a very warm welcome. The location was excellent for what we needed. Beautiful waterfall just outside the door. The room was spacious, super clean with a comfortable bed. Everything was spotless and we can truly recommend this place.

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9
Superb
1,521 reviews

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. Best hostel that we have stayed in Iceland. Best location, friendly and caring staffs, good price. Clean shower room, hostel as a whole. Big drawer to keep stuffs and not overcrowded room, maximum six people in our room. Good security from entrance, to door to dormitory space, to dormitory room.

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9.1
Superb
2,120 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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9.3
Superb
1,378 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. It was a very snowy and windy day, but despite the harsh weather, our host was incredibly welcoming. Even the following day, when the conditions remained just as bad, she was kind enough to offer us a late check-out at no extra charge. She didn’t rush us to leave, which made our stay even more comfortable and stress-free. To make our experience even better, they provided us with a free breakfast, which was absolutely amazing. The food was fresh, delicious, and exactly what we needed to start the day. It was a thoughtful touch that made us feel even more at home. The place itself was cozy and inviting, with a warm and homely atmosphere. One of the highlights was the game/chill room, which had a wide variety of games, making it the perfect spot to relax and unwind. Whether it was board games, card games, or other entertainment options, there was something for everyone to enjoy. Overall, it was a truly wonderful and memorable stay, made even better by the thoughtful and accommodating host. We would definitely love to return!

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9
Superb
1,253 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. The facilities were very nice and the breakfast was delicious. The staff was super friendly also. I highly recommend!

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

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