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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. Everything about this hotel was fantastic.

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9.5
Exceptional
1,634 reviews
Price from
$531
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. Friendly stuff, good breakfast, quiet place, dark courtains (summer time!), bright and panoramic lounge room.

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9
Wonderful
2,158 reviews
Price from
$194
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
2,311 reviews
Price from
$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. Confortable common areas. Serviced kitchen. Good location.

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9
Wonderful
1,616 reviews
Price from
$74
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 place is made obviously with thought in mind how themselves would like to stay in a similar place. Very clean toilets/bathrooms, clean rooms, they put some curtains on each bed so that one would get that degree of privacy which makes a difference from an open space type of hostel. (I never understood why wouldn't be possible for the hostels, especially with loads of beds in a dorm, to put some curtains (which cannot be that expensive). Good matreses, nice hot pool and sauna and a very nice social space downstairs which hosts events from time to time, the rune type of writing everywhere, really nice staff!

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9.1
Wonderful
2,176 reviews
Price from
$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. Lovely stay and Anna was very helpful to guide us to the nearby attractions. Highly recommend.

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9.2
Wonderful
1,391 reviews
Price from
$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. Great location. We chose it as it was fairly central to places we wished to visit along the south coast and it looked like it would be a dark area during the night for viewing the aurora. Rooms were part of individual lodges with the restaurant/reception/breakfast being in a central lodge. Rooms were spacious and clean with coffee machines. Breakfast and restaurant served very nice food. Staff were exceptionally nice and chef was helpful making sure we were safe regarding allergies. Would he happy to visit again next time we are in Iceland.

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9.4
Wonderful
1,073 reviews
Price from
$317
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. Good location, close to the Ring Road and yet can be a starting point for highland adventure. Food at the restaurant was also excellent.

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9
Wonderful
1,236 reviews
Price from
$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. Guesthouse Bitra B&B was absolutely amazing! I have no complaints—everything was perfect: a great location, delicious breakfast, and a friendly host.

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9.2
Wonderful
1,195 reviews
Price from
$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. The staff was great, they were truly nice with us.

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9
Wonderful
1,289 reviews
Price from
$364
per night

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