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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. Really nice hotel, great room, amazing views. The staff was very friendly

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9.5
Exceptional
1,591 reviews
Price from
$494
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. Beautiful spot with great amenities. Customer service was amazing and breakfast was one of the best we had in Iceland.

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9
Wonderful
2,175 reviews
Price from
$188
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. Everything was wonderful. It was by far our favorite stay through our trip. Cozy, clean, and very homie!

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9.7
Exceptional
2,313 reviews
Price from
$211
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. This hostel is made in the building of a former old school. That makes it look like a cool and creative maze with beautiful staircase, spacious social area and cozy rooms. Staff is amazing and fun, caring and friendly people who offered free handmade cake to all the guests. It was a delight to stay in Paradise Cave. The kitchen is big and has everything you need to cook decent meals, and also there is a nice waterfall view from the window. Shared bathroom is spacious and clean. Room was comfy and had neat decorations. The spirit of the place is all friendly and youthful, was very refreshing mentally :)

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9.1
Wonderful
1,639 reviews
Price from
$79
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. Very cool vibes, helpful and informative staff, clean and plenty of amenities

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9.2
Wonderful
2,188 reviews
Price from
$61
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. Thank u for putting a washing machine and dryer! The hot tub was lovely. Anna was a wonderful host.

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9.2
Wonderful
1,392 reviews
Price from
$181
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 room was very cosy and had everything we needed (coffee machine with capsules 😍😍😍) The lounge and restaurant are very nicely designed. The staff were the most pleasant and accommodating. We had a dinner there that was delicious and also not too expensive.. what saved pur day was the hot tubs - after a long hike in wind and rain we were lucky to have this luxury and we were all alone and it was just magic!

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9.4
Wonderful
1,074 reviews
Price from
$324
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
Wonderful
1,247 reviews
Price from
$243
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. Super cozy and tourist friendly countryhouse, within meters from one of the main roads, but immersed in the nature. The staff was super friendly and willing to help, and there are many subtle touches to make the most out of your stay in that part of the island. Very good breakfast as well

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9.2
Wonderful
1,192 reviews
Price from
$192
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. Breakfast. Good shower and shampoo gel. No strange smell of hot water.

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9
Wonderful
1,299 reviews
Price from
$424
per night

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