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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
1,585 reviews
Price from
$490
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. Very friendly and helpful team. Coffee machine and soft drinks continuously accessible and free of charge. Nice and cozy chill-out areas.

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9
Wonderful
2,177 reviews
Price from
$168
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 better than perfect. The room is very clean, the house and kitchen is fully equipped - sandwich wrap, cooking oil or even dry shampoo - all is there. The host are very nice people and they prepare waffles in the morning. Additionally we were able to see northern lights in the garden - they are unfortunately not green as in picture - but it was also incredible!

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9.7
Exceptional
2,316 reviews
Price from
$220
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. great location, clean and room, convenient check-in

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9
Wonderful
1,173 reviews
Price from
$191
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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9.1
Wonderful
1,639 reviews
Price from
$84
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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9.2
Wonderful
2,192 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. We had a pleasant stay for one night and we also enjoyed the breakfast next morning. The surroundings are beautiful. The hosts are friendly and helpful. Very good overall experience.

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9.2
Wonderful
1,392 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. Everything but mostly the staff. They are so lovely, welcoming, extremely helpful and responsive. We particularly like to thank Saggi for being super nice and helpful.

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9.4
Wonderful
1,074 reviews
Price from
$321
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 was stunning!! We got to feed horses and pet sheep. The landscape behind the hot tub area was breathtaking and perfect for relaxing!

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9
Wonderful
1,245 reviews
Price from
$241
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. Very clean and comfortable, the rooms were small but nice, shared bathrooms were always available, excellent WiFi and outstanding breakfast with smoked salmon and everything else! Close to Selfoss’ restaurants and supermarkets.

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9.2
Wonderful
1,194 reviews
Price from
$191
per night

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