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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. There are many kinds of food in breakfast, and the design of the hall is very beautiful. And Free Bath!!

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9.5
Exceptional
1,731 reviews
Price from
US$351
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. Very nice hotel, friendly staff, amazing hot tube, sauna. You can get some coffee, hot chocolate, biscuits, apples for free.

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9
Superb
2,131 reviews
Price from
US$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. Loa's Nest was the perfect way to end our trip in Iceland. Their guesthouse had extremely easy check in. The entire facility was clean and equipped with everything and more. I would highly recommend this guesthouse for all types of travellers.

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9.7
Exceptional
2,293 reviews
Price from
US$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. Quiet and peaceful location. Rooms were clean and modern. We saw the northern lights right behind the house!

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9
Superb
1,225 reviews
Price from
US$149
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 Room was great, beds comfortable. WC close by 4 Shower rooms close by 2 with WC and sink, 2 without Tea and coffee always available for free in dining area Dinner was excellent Breakfast was excellent Large car park

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9
Superb
1,554 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. It is an excellent location if you are planning to visit the south coast and central highlands, with clean common areas, good rooms plus beds(not squeaky at all), warm and hospitable staff, and great food. I'll stay here again in the future.

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9.1
Superb
2,132 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. The place is just amazing. A beautiful house in a surrounded by trees. Fully equipped kitchen. Families were cooking dinner as if they were in their home. Buffet breakfast was simple but delicious! We wish we could stay for more than just one night!

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9.2
Superb
1,393 reviews
Price from
US$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. Stunning location, exceptionally friendly and helpful staff, incredible views (and we did get to see the aurora)

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9.4
Superb
1,026 reviews
Price from
US$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. Everything, especially how helpful are the staff

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9
Superb
1,242 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 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
1,217 reviews
Price from
US$154
per night

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