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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
1,744 reviews
Price from
US$354
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. Beautiful house, clean and tidy, perfect for 4-5 people, great location for stop if u travel from south to north, would be more wonderful if they had washing and drying machine

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9
Superb
1,005 reviews
Price from
US$327
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. Amazing hotel, amazing services, clean, tidy rooms with great beds. Everything was top notch.

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9.1
Superb
2,106 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. The host and her family here was most hospitable people and gave us ample tips in Icelandic places to visit since we were doing a 10 days of ring road with our 9 year old .And they made sure we had a good stay at his comfortable place and got us free waffles and coffee even though it was not part of the stay.

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9.7
Exceptional
2,285 reviews
Price from
US$200
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. Perfect location for watching the northern lights. We saw them from the window, so we went down to the lake and also across the road was amazing

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9
Superb
1,237 reviews
Price from
US$152
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 chose the location becuase we had a few short adbventures planned in the area so it was a good central location. It exceeeded our expectations basically becuase of the welcome and the feel of the place; it made me feel really welcome; it was the only place we stayed two nights during our 10 day sfari all around iceland and I have absolutely no regrets. The value for money is astounding and with the quality of the service it was like home.

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9
Superb
1,546 reviews
Price from
US$72
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. We stopped at Midgard Base Camp for one night only and will remember this place, mostly because of an amazing staff that helped us plan out the day and see our first northern lights! If we can come back to Iceland, we will definitely stay here again! Perfect place to wash clothes and dry hiking shoes as well.

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9.1
Superb
2,129 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. Anna was such a great host, and the famhouse is charming. Great vibe, wonderful breakfast, and super comfortable accommodations!

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9.2
Superb
1,380 reviews
Price from
US$237
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. Great location. We chose it as it was fairly central to places we wished to visit along the south coast and it looked like it would be a dark area during the night for viewing the aurora. Rooms were part of individual lodges with the restaurant/reception/breakfast being in a central lodge. Rooms were spacious and clean with coffee machines. Breakfast and restaurant served very nice food. Staff were exceptionally nice and chef was helpful making sure we were safe regarding allergies. Would he happy to visit again next time we are in Iceland.

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9.4
Superb
1,013 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 location (beauty of the nature), the staff, the cosiness and the warm feeling of the cottage room and the norhtern lights!

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9
Superb
1,242 reviews
Price from
US$252
per night

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