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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+
Our top picks Lowest Price First Star rating and price Top reviewed

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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
1,580 reviews
Price from
$492
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. Comfortable and clean room, quiet place, very comfortable bed and pillows, friendly staff, tasty breakfast, nice terrace for the rest

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9
Wonderful
2,173 reviews
Price from
$190
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. Best guest house ever! Super friendly, super waffles, super Northern Lights, super clean, super cozy

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9.7
Exceptional
2,313 reviews
Price from
$221
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. Automated check in Always offering support.

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9
Wonderful
1,172 reviews
Price from
$210
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. Best staff we met in Iceland, really helped us to build our trip. Simple but nice breakfast. Great value for money!

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9.1
Wonderful
1,643 reviews
Price from
$87
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. I liked that the beds in the dorms had curtains, so you had some privacy. There's a big drawer under the bed where you can store your luggage and lock it (you need to bring a lock). There's a nice restaurant and bar in the hostel. The sauna and yakuzi upstairs outside are the highlight. Loved it!

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9.2
Wonderful
2,190 reviews
Price from
$68
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. Hot tub over the river was great

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9.2
Wonderful
1,388 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. Clean, beautiful surroundings, comfortable, nice staff

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9.4
Wonderful
1,074 reviews
Price from
$311
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. Super easy to find, perfect price to value ratio and great people running it

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9
Wonderful
1,244 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. Love this charming place! The breakfast is nice and the staff really cares about doing a good job. I highly recommend this place.

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9.3
Wonderful
1,195 reviews
Price from
$192
per night

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