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The best cheap hotels in West Iceland

Check out our pick of great cheap hotels in West Iceland

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Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
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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 kettle. Clean and comfortable with amazing views. The rooms are a good size. It was so lovely to have quality toiletries. The service was outstanding. The breakfast had a great selection of quality items, and the soup dinner was a delicious option.

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9.2
Superb
1,014 reviews
Price from
US$174
per night

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. The room was very clean and facilities were great. The staff was also very very nice which made our stay even better. The breakfast was also delicious and we had a variety of choices.

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9.1
Superb
1,299 reviews
Price from
US$111
per night

Bygghamar has lake views, free WiFi and free private parking, situated in Stykkishólmur.

The lodge provides guests with a terrace, mountain views, a seating area, cable flat-screen TV, a fully equipped kitchen with a fridge and a microwave, and a private bathroom with shower and a hairdryer. A stovetop and toaster are also offered, as well as a coffee machine and a kettle. It's one of the best places we've ever stayed at. On the outside you don't really expect quite what you get once you enter. The place is very new and modern, perfectly clean and tidy. And the views, those views of the nearby lake and the mountains in the distance are just out of this world. There are two big windows in the living room from where, sitting on the sofa, one could relax and breathe in the beauty of the nature. The place has everything one might need, plus even more. Aside from the full stack kitchen, the very comfortable bed, the nice bathroom and the good size living room, power sockets everywhere you need one, the owners have also provided a hair dryer, several board games, some additional hygienic products and a very easy to understand sorting of the waste with separate buckets, something that tourists need guidance as every country has their own rules. Of course, free parking is available in front. The villa is just 6 minutes away by car from this beautiful town at the sea, with its famous lighthouse at the top of a hill. Highly recommended and thank you for the warm welcome.

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9.9
Exceptional
105 reviews
Price from
US$431
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. For the first time in my life, I didn’t want to leave a place. Péninsula Suites is simply magical. The view is absolutely breathtaking — we stayed in Suite 1, which I truly believe offers the best view I’ve ever seen. Being there felt like stepping out of this world. It’s the perfect place to disconnect completely and reconnect with nature, the sea, and even the sound of the seagulls. I’ve never felt so light, so peaceful, so far away from the noise of everyday life. The interior is beautifully designed with incredible attention to detail. Every material is top quality — even the kitchen towels and bed linens. The lighting, the layout — everything has been so thoughtfully curated. I’m 100% coming back, and next time for a longer stay. This is, without a doubt, the best place I’ve ever been. I recommend, recommend, and recommend again!

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9.8
Exceptional
153 reviews

Kambur Cottages has sea views, free WiFi and free private parking, situated in Snæfellsbær. With mountain views, this accommodation features a terrace. The guest house features family rooms.

All units at the guest house are fitted with a seating area. Every unit is fitted with a coffee machine and a private bathroom with a shower and bathrobes, while certain rooms have a fully equipped kitchen fitted with an oven. At the guest house, all units include bed linen and towels. The apartment is very modern and equipped with basics that you would need during your stay. The view was spectacular and staying there was great. Highly recommended!

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9.2
Superb
129 reviews
Price from
US$286
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. We really enjoyed the quiet and remote location of the guesthouse. The room was clean and the beds were really comfortable. The house offers two beautiful bathrooms, a spacious kitchen, and a shared common area.

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9.4
Superb
105 reviews

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. Great location, very large space, very nice facilities, and excellent view!

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9.4
Superb
195 reviews
Price from
US$241
per night

A recently renovated homestay set in Borgarnes, Apartment Fernsicht features a garden. The property features sea and mountain views. The accommodation offers a shared kitchen and private check-in and check-out for guests. Sunset and sunrise from the bedroom as well as a perfect Nirthern lights display.

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9.5
Exceptional
101 reviews
Price from
US$147
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
Superb
164 reviews
Price from
US$338
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. Hótel is small but all facilities are quite new and modern. The shared kitchen has new kitchenware and very convenient compared to other hotels that shared kitchen provided very old and not so clean kitchenware. It is located in remote area so it is quite peaceful and beautiful scenic view. We are happy there is very good warm pool nearby. The pool is cozy and not crowded at all.

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9.2
Superb
401 reviews

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