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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. Absolutely stunning location and the hot tub is amazing

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9.5
Exceptional
1,630 reviews
Price from
$546
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
2,157 reviews
Price from
$191
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. Very kind and warm and generous owner.

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9.7
Exceptional
2,311 reviews
Price from
$212
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. We received a very warm welcome. The location was excellent for what we needed. Beautiful waterfall just outside the door. The room was spacious, super clean with a comfortable bed. Everything was spotless and we can truly recommend this place.

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9
Wonderful
1,616 reviews
Price from
$77
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. Everything was great. There was heating, sauna and hot tub, very special at cold days. There was special utilities that can dry your clothes and shoes, it was great. A small kitchen apart. You can serve a tea or coffee for free in the restaurant as a guest. Showers and toilets are common, but are several so you shouldnt stay to wait for a long. Rooms are common too, but your bed is closed with special curtains, so you are not disturbed. We like it even if it was a common room.

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9.1
Wonderful
2,183 reviews
Price from
$62
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
$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. Staff always positiveand helpful. Great Restaurant- very good breakfast. Superb gourmet dinner!!! Hot bath tub with magnificent views. Lobby and bar - Cosy and comfortable. Highly recommend.

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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. The cottage was cozy. The staff were friendly.

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9
Wonderful
1,240 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. We enjoyed being welcomed into this B&B. It felt very personal. Very service minded. I got a place to dry our towels. The guests all great each other. The breakfast was perfect. I had a 10 year old with me and he found all his favourites.

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9.2
Wonderful
1,196 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. Super clean & cozy, doesn’t feel like “only” 3 ⭐️⭐️⭐️

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9
Wonderful
1,292 reviews
Price from
$363
per night

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