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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. This is the best hotel I have ever stayed in! Everything is perfect. Higher recommended!

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9.5
Exceptional
1,566 reviews
Price from
$471
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 recepcionist uncle was very kind, and the hot tub was very nice as well.

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9
Wonderful
2,171 reviews
Price from
$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. 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
2,312 reviews
Price from
$226
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. Location is super, very nice staff, clean room. Nice to have coffee and tea in the room. W used breakfast in reccomend hostel.

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9
Wonderful
1,165 reviews
Price from
$230
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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9.1
Wonderful
1,649 reviews
Price from
$92
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. Best hostel that we have stayed in Iceland. Best location, friendly and caring staffs, good price. Clean shower room, hostel as a whole. Big drawer to keep stuffs and not overcrowded room, maximum six people in our room. Good security from entrance, to door to dormitory space, to dormitory room.

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9.2
Wonderful
2,194 reviews
Price from
$67
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 host welcomed us professionally and warmly, gave us an orientation to the property. The hot tub was relaxing and positioned perfectly to view the

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9.2
Wonderful
1,388 reviews
Price from
$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. Very cozy and super clean houses. Friendly staff and amazing breakfast, especially small pancakes

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9.4
Wonderful
1,074 reviews
Price from
$328
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. Friendly staff, amazing view out of the room, quiet location

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9
Wonderful
1,246 reviews
Price from
$242
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. Everything was good but breakfast was the best .

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9.3
Wonderful
1,198 reviews
Price from
$191
per night

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