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The best cheap hotels in South Iceland

Check out our pick of great cheap hotels in South Iceland

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Superb: 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 an incredibly beautiful hotel. The room is well appointed with everything you could need including c-charging adapters built in to the headboard. The bed is the most comfortable bed in all our stays throughout Iceland. The breakfast in unreal and the selection of fresh, quality food is unlike any hotel breakfast I've ever had. The view surrounding the hotel is really beautiful and parking is plentiful. The hotel provides robes and slippers for the hot tub and the view of the glacier and mountains is perfect while you soak. The staff were very friendly and helpful throughout the stay and room service is lightening fast!

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9.5
Exceptional
1,756 reviews
Price from
US$349
per night

Set in Höfn in the South Iceland region, REY Stays - House features a garden. This property offers access to a terrace, free private parking and free WiFi.

The apartment consists of 2 bedrooms, a living room, a fully equipped kitchen with an oven and a kettle, and 1 bathroom with a shower and a hair dryer. Towels and bed linen are featured in the apartment. The accommodation is non-smoking. Beautiful views. Clean rooms. Warm house. Justperfect.

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9
Superb
1,016 reviews
Price from
US$314
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. Wonderful sauna and hot tub, and cosy shared areas. The food and drinks available at all hours was so welcome after a long day.

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9.1
Superb
2,101 reviews
Price from
US$169
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. The host and her family here was most hospitable people and gave us ample tips in Icelandic places to visit since we were doing a 10 days of ring road with our 9 year old .And they made sure we had a good stay at his comfortable place and got us free waffles and coffee even though it was not part of the stay.

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9.7
Exceptional
2,282 reviews
Price from
US$188
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. The apartment is very modern, clean, nice, and well-equipped. We had everything we needed for our stay in the rooms and bathroom, as well as the fridge in our room. By the way, the snack and drink fridge in the corridor was also an amazing idea! The owners are very friendly and nice; they provided us with very useful information and instructions we needed for our stay, and they were always there to respond quickly to our questions, etc. What's more, it was so nice to receive their little welcome gift: Icelandic chocolate! We also loved this little charming city very much. We hope to come back again one day. Highly recommended! P.S. the location is amazing!

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9
Superb
1,239 reviews
Price from
US$102
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. Excellent location in a convenient and beautiful location. The girl at the reception (I didn't ask her name) is just made of gold. A million thanks for everything

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9
Superb
1,528 reviews
Price from
US$71
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. Very cool vibes, helpful and informative staff, clean and plenty of amenities

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9.1
Superb
2,124 reviews
Price from
US$38
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 facilities, hygge, peaceful with river song to sleep

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9.3
Superb
1,379 reviews
Price from
US$180
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. Everything, especially how helpful are the staff

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9
Superb
1,246 reviews
Price from
US$251
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. This place was outstanding! The location, the staff, the room and delicious breakfast met our expectations.I really recommend this place for staying!

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9.3
Superb
1,220 reviews
Price from
US$155
per night

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