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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. The hotel was completely perfect in everything, we enjoyed so much the hot tube while snowing

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9.5
Exceptional
1,654 reviews
Price from
$398
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. The calm, little sweet treats, sauna & bath. The breakfast was also delicious. And the room very compfortable.

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9
Wonderful
2,157 reviews
Price from
$173
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. Lovely, clean and superbly organized guesthouse. The best hosts you can imagine. So kind and friendly, always giving us the best advice on where to go and what to do. Our 10 year old loved staying here too. If Loas Nest is available on your dates, dont hesitate, just go ahead and book it. We would go back in a heartbeat and we hope to see Unnar and his wife again either in Iceland or in Norway.

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9.7
Exceptional
2,297 reviews
Price from
$224
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. All was perfect !!:-) Best hostel in my life and amazing view

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9
Wonderful
1,612 reviews
Price from
$73
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
2,165 reviews
Price from
$63
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. Anna was such a great host, and the famhouse is charming. Great vibe, wonderful breakfast, and super comfortable accommodations!

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9.2
Wonderful
1,389 reviews
Price from
$183
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
1,070 reviews
Price from
$327
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. The guesthouse provided an exeptional experience with its helpful staff and enjoyable amenities. The owners gave us some nice recommendations.The bathrooms as well as the room was/were very clean. The breakfast, featuring local and fresh ingredients, was a highlight. Additionally, the unique feature of being able to view the aurora directly from the property added a special touch to the stay. Recommended for those seeking a comfortable and memorable experience.

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9.2
Wonderful
1,192 reviews
Price from
$157
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. Nice quiet warm room. Breakfast was good, polite staff, would stay again. The restaurant was expensive for dinner.

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9
Wonderful
1,285 reviews
Price from
$366
per night

Situated in Reykholt in the South Iceland region, Blue View Cabins features accommodation with free WiFi and free private parking, as well as access to a hot tub. The property is around 23 km from Geysir, 34 km from Gullfoss Waterfall and 47 km from Thingvellir National Park. When staying at the holiday home, guests can use private entrance. Modern new cabin with exceptional view. Fully equipped kitchen (incl. olive oil, salt, pepper, coffee). You need to have a car to get there. Cabins are close to main attractions in Golden Circle Area. Hot tub just in front of the cabin. Fully recommended.

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9.4
Wonderful
162 reviews
Price from
$223
per night

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