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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
1,643 reviews
Price from
US$432
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. we enjoyed our stay in this hotel, very stylish, comfy and delisios breakfast was served. as a bonus we saw a nothernlight through the window.

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9
Superb
2,162 reviews
Price from
US$173
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. Beautiful property with big clean bedrooms and private bathrooms. The hosts are super nice and friendly people. The breakfast pancakes are delicious. It was one of our favourite places we stayed during our whole vacation.

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9.7
Exceptional
2,299 reviews
Price from
US$223
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. The owners Lucia and Davide are wonderful people and are now my new friends.

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9
Superb
1,612 reviews
Price from
US$73
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 sauna and hot tub are free and absolutely relaxing! Amazing sunset from the patio! The hostel is clean, quiet and very comfortable!

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9.1
Superb
2,166 reviews
Price from
US$64
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. Comfort, clean, friendly host and amazing breakfast.

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9.2
Superb
1,391 reviews
Price from
US$182
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. The staff was the epitome of hospitality! Always smiling and welcoming!

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9.4
Superb
1,073 reviews
Price from
US$325
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. A quiet hotel with friendly service, an excellent base for exploring southern Iceland. Delicious breakfasts and clean rooms.

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9
Superb
1,239 reviews
Price from
US$226
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. Great accommodation, well placed for star trip. Excellent location for northern light chasing. The owners are very cooperative in all means. Very good breakfast in a Cousy and very pleasant dining room. Bottom line: warm recommendation.

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9.2
Superb
1,191 reviews
Price from
US$156
per night

This boutique hotel is peacefully situated in the South Iceland, in the village of Kirkjubaejarklaustur, a 1-hour drive from Skaftafell and Reynisfjara Black Beach, and 15-minutes drive from Fjaðrárgljúfur canyon and Laki Craters. All rooms include a flat-screen TV, private bathrooms with premium bathroom amenities, Nespresso coffee-machines. Beautiful interior , really tasteful decor and a nice place to relax . Breakfast was amazing with lots of choices. We loved the hotel bar, and the staff were top notch. 💯🇮🇸

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9
Superb
1,289 reviews
Price from
US$365
per night

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