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The best cheap hotels in West Iceland

Check out our selection of great cheap hotels in West Iceland

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Review score

Wonderful: 9+ Very Good: 8+ Good: 7+ Pleasant: 6+
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Facing the seafront in Búðardalur, The Castle features a garden and barbecue facilities. The property has sea and mountain views. There is a sun terrace and guests can make use of free WiFi, free private parking and an electric vehicle charging station. Very nice little private bungalows. So nice to have a space for yourself. Very handy having our own fridge in the room. Great location and very modern facilities.

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9.2
Wonderful
1,289 reviews
Price from
$115
per night

Peninsula Suites is located in Hellnar. This property offers access to a balcony, free private parking and free WiFi.

The aparthotel with a terrace and sea views features 1 bedroom, a living room, a flat-screen TV, an equipped kitchenette with a microwave and a toaster, and 1 bathroom with a walk-in shower. Towels and bed linen are provided in the aparthotel. This aparthotel is non-smoking and soundproof. Great accommodation, it gives real comfort despite the relatively remote location. We liked everything about the house. We expected to have a break there from constant driving of previous days, which we did - just hit some nearby attractions (Rauðfeldsgjá Gorge and Lóndrangar) and took a costal walk to Arnarstapi.

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9.8
Exceptional
109 reviews
Price from
$342
per night

Hotel Stafholt has a garden, terrace, a restaurant and bar in Varmaland.

At the hotel, the rooms are equipped with a wardrobe. With a private bathroom fitted with a shower and a hairdryer, rooms at Hotel Stafholt also feature free WiFi, while some rooms also feature a mountain view. All guest rooms will provide guests with a desk and a coffee machine. This place is a true gem. A small hotel in a European style, where every detail reflects taste and care. The interiors are stylish and beautiful, creating a sense of comfort and calm. The room was spacious, with an amazing view from the window — absolutely breathtaking, especially at sunrise. Everything is thoughtfully designed down to the smallest detail. You feel it right away: nothing unnecessary, just harmony and comfort. The service was excellent — warm, attentive, and unobtrusive. The dinner especially touched us — light and homemade: flavorful soup, fresh bread, and a slice of delicious homemade cake. It all felt so kind, so genuine. This is the kind of place you want to return to — not just to relax, but to feel that special atmosphere of care and quiet all over again.

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9.2
Wonderful
905 reviews
Price from
$202
per night

The Guesthouse at Dynjandi Falls is located in Bíldudalur and features a private beach area, an open-air bath and a shared lounge. This beachfront property offers access to free WiFi and free private parking. The guest house has a hot spring bath and a shared kitchen. Loved it here! Looking forward to coming back in winter to observe the northern lights and to enjoy the serenity of this place. Thank you Leslie and Greg, you are wonderful hosts.

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9.5
Exceptional
102 reviews
Price from
$186
per night

Set in Grundarfjordur in the West Iceland region, Hafnir offers accommodation with free WiFi and free private parking.

The apartment consists of 1 bedroom, a living room, a fully equipped kitchen with a dishwasher and a coffee machine, and 1 bathroom with a walk-in shower and a hair dryer. Towels and bed linen are offered in the apartment. The property offers sea views. Spacious , well kept, clean, and had all everything we needed

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9.4
Wonderful
169 reviews
Price from
$332
per night

Set in Reykholt in the West Iceland region, Night & Day lodge - glass roof with hot tub features accommodation with access to a hot tub. This property offers access to a patio, free private parking and free WiFi. The property is non-smoking and is situated 36 km from Bjarnafoss. The Hot Tub!! Also the glass walls and roof!! 🪟

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9.4
Wonderful
145 reviews
Price from
$427
per night

A recently renovated guest house set in Birkimelur, Strönd Guesthouse features barbecue facilities. This beachfront property offers access to a terrace, free private parking and free WiFi. The guest house features a hot tub and a shared kitchen. Well designed, new, clean, cozy, great equipped kitchen.

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9.2
Wonderful
382 reviews
Price from
$187
per night

Situated in Borgarnes in the West Iceland region, Mófellsstaðakot has a patio and mountain views. The property features river views. There is a sun terrace and guests can make use of free WiFi, free private parking and an electric vehicle charging station. Our stay was wonderful! The cottage was cozy, warm, and had everything we needed. A special highlight was their two amazing dogs, Freya and Askur—such gentle and playful companions. Our 3-year-old absolutely loved playing with them (more than an hour in the cold), and it was such a nice touch to have dog toys in the cottage. The location was also perfect, with windows facing the northern lights direction. After three winter trips to the Nordic countries, we finally got to see the northern lights—right from the comfort of our warm cottage at 1 AM! It was truly a magical experience, and we were actually sad to leave.

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9.5
Exceptional
328 reviews
Price from
$160
per night

Located in Patreksfjörður, in a historic building, 23 km from Pollurinn, Pálshús is a guest house with a garden and shared lounge. There is a sun terrace and guests can make use of free WiFi and free private parking. The cleanliness, the decor, the location, the set up

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9.3
Wonderful
395 reviews
Price from
$125
per night

The Old Bookstore is situated in Flateyri and offers a shared lounge. The property has sea and mountain views. The bed and breakfast features an outdoor fireplace, a 24-hour front desk, and free WiFi is available throughout the property. Exceptional place with exceptional views on Önundarfjörður.

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9
Wonderful
239 reviews
Price from
$191
per night

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