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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. Beautiful hotel, perfect location for exploring the glacier etc. The outdoor spas are fantastic, relaxing in such breathtaking surrounds is magic. The staff are warm and so approachable, nothing was a problem for them. We enjoyed a lovely meal at the restaurant and a hottub soak under the stars. Thankyou to all the staff and Benny (with his log for a stick) for a great stay, we will be back.

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9.5
Exceptional
1,884 reviews
Price from
US$342
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. Everything was so clean, the kitchen very well equipped and it was so cozy. We saw auroras.

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9
Superb
1,063 reviews
Price from
US$353
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. Friend staff, quit, very comfortable, nice breakfast.

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9.1
Superb
2,023 reviews
Price from
US$165
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 saw aurora here !! He is the waffle master !!

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9.7
Exceptional
2,282 reviews
Price from
US$224
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. Super nice place near all gold circle attractions

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9
Superb
1,297 reviews
Price from
US$106
per night

Set in Hvolsvöllur, 3.5 km from Seljalandsfoss, Paradise Cave Hostel & Guesthouse offers accommodation with a garden, free private parking and a bar. The accommodation provides a shared kitchen, and luggage storage for guests. Very friendly and welcoming host! Good breakfast and there is free coffee and tea during the day. Beds were also comfortable and it was quiet in the dorm (12 people).

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9
Superb
1,510 reviews

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. I love EVERYTHING about Midgård. The place, the location, the decoration, the hot tub, but the biggest asset of Midgård is their OUT OF THIS WORLD FANTASTIC STAFF. <3

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9.1
Superb
2,094 reviews
Price from
US$37
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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9.3
Superb
1,373 reviews
Price from
US$182
per night

Bakki Apartments & Hostel offers dorm rooms and self-catering apartments by the sea in Eyrarbakki village. WiFi and parking are free. Reykjavík city centre is a 50-minute drive away.

Bakki's apartments feature sea- or mountain views, a seating area and a flat-screen TV. Kitchen facilities include a stove, microwave, fridge and dining table. All apartments have a bathroom with a shower and free toiletries. I loved everything, the staff really friendly, the location really good, the price excellent. All Great.

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9
Superb
1,518 reviews
Price from
US$56
per night

Overlooking Höfn Harbour and Vatnajökull Glacier, this hostel features a guest kitchen, BBQ area and laundry facilities.

Staff can help arrange glacier tours, as well as boat and snowmobile trips.

Höfn Hostel offer some rooms with shared bathroom and some with private bathrooms. Some rooms are accessible. A great hostel, very clean and comfortable. The kitchen is really well organized with plenty of space for multiple groups cooking. It feels very organised and well run.

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9
Superb
2,824 reviews
Price from
US$53
per night

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