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The best cheap hotels in South Iceland

Check out our selection of great cheap hotels in South Iceland

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Review score

Wonderful: 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. The hotel was completely perfect in everything, we enjoyed so much the hot tube while snowing

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9.5
Exceptional
1,726 reviews
Price from
$352
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. The hotel is located in a beautiful, scenic area. We arrived late, but the letter and room key were waiting for us at the reception. The hotel has many cozy seating areas and good Wi-Fi. Outside, there is a sauna and hot tubs – it was a wonderful opportunity to relax. Breakfast was delicious and plentiful.

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9
Wonderful
2,129 reviews
Price from
$169
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 had such a fantastic experience staying here! The location was perfect, with a beautiful view that made our mornings and evenings extra special. The place was spotlessly clean and had everything we needed for a comfortable and relaxing stay. The bed was super comfy, and the shower had great water pressure—perfect after a long day of exploring. One of the highlights was the delicious breakfast—the waffles and milk were absolutely amazing and such a thoughtful touch! Our host was incredibly friendly and welcoming, which made the whole experience even better. We couldn’t have asked for a better place to stay and would definitely come back again!

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9.7
Exceptional
2,289 reviews
Price from
$209
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 apartment is very modern, clean, nice, and well-equipped. We had everything we needed for our stay in the rooms and bathroom, as well as the fridge in our room. By the way, the snack and drink fridge in the corridor was also an amazing idea! The owners are very friendly and nice; they provided us with very useful information and instructions we needed for our stay, and they were always there to respond quickly to our questions, etc. What's more, it was so nice to receive their little welcome gift: Icelandic chocolate! We also loved this little charming city very much. We hope to come back again one day. Highly recommended! P.S. the location is amazing!

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9
Wonderful
1,224 reviews
Price from
$151
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. Staffs are really friendly. Other guests were all nice, quiet and respectful. Very comfy place for a short stay. Bath room and kitcken are super clean. Recommend.

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9
Wonderful
1,555 reviews
Price from
$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 exceeded the expectiation! The hot tub and the sauna was a amazing bonus, we could see the aurora from the hot tub

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9.1
Wonderful
2,132 reviews
Price from
$41
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. "Arbakki Farm House is a true hidden gem. A beautiful and peaceful place that instantly makes you feel at home. The atmosphere is warm and welcoming, with every detail thoughtfully arranged to create a sense of comfort and coziness. It's the perfect spot to unwind, reconnect with nature, and enjoy genuine hospitality. Thank you for such a heartfelt experience — we’ll definitely be back!"

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9.2
Wonderful
1,391 reviews
Price from
$179
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. Excellent breakfast. Spectacular view

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9.4
Wonderful
1,025 reviews
Price from
$316
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. Great apartment, very comfort with everything you need in a perfect location

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9
Wonderful
1,238 reviews
Price from
$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. Breakfast was great. The house itself was very interesting, an old woman's prison apparently.

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9.3
Wonderful
1,212 reviews
Price from
$154
per night

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