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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
1,732 reviews
Price from
US$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. Great stuff, delicious breakfast and comfortable room

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9.1
Superb
2,129 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. 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
2,294 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. 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
1,226 reviews
Price from
US$150
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$211
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. This place is amazing. Very comfy. The sauna and hot tub are on the roof. The restaurant is open a little later than local places so we had some dinner after a long day of exploring. They also do daily excursions one can purchase, however we had a rental and were self touring.

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9.1
Superb
2,133 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
1,390 reviews
Price from
US$180
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. View from the restaurant, lounge, hot tub

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9.4
Superb
1,026 reviews
Price from
US$317
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 cottage was cozy. The staff were friendly.

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9
Superb
1,239 reviews
Price from
US$295
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$227
per night

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