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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. Best place we stayed at during our trip. Everything was lovely, big comfortable room, the outside area was great, all very pretty, we just wished we stayed longer

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9.5
Exceptional
1,735 reviews
Price from
US$355
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. Great stuff, delicious breakfast and comfortable room

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9.1
Superb
2,117 reviews
Price from
US$171
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 loved this concept, own room and shared kitchen. Intresting meeting and conversations with people from all over the World.

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9.7
Exceptional
2,286 reviews
Price from
US$200
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. It was a very elegant and cozy room

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9
Superb
1,227 reviews
Price from
US$151
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. Staffs are really friendly. Other guests were all nice, quiet and respectful. Very comfy place for a short stay. Bath room and kitcken are super clean. Recommend.

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9
Superb
1,551 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 clean, good location. Hostel beds had curtains covering the entire length. Had a hot tub and sauna. Staff were all super friendly. Awesome food at the restaurant

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9.1
Superb
2,129 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 stay and Anna was very helpful to guide us to the nearby attractions. Highly recommend.

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9.2
Superb
1,387 reviews
Price from
US$181
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. The location was perfect for Northern Light viewing (weather permitting and subject to you taking the time to wait and check the sky). Staff were very friendly and helpful. I would 100% recommend this lodge as a stop for anyone traveling in Iceland. This is a little gem.

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9.4
Superb
1,025 reviews
Price from
US$319
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. Every thing was great Thanks

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9
Superb
1,241 reviews
Price from
US$252
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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9.3
Superb
1,217 reviews
Price from
US$155
per night

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