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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. The simple, minimalistic, nordic design pondered by the stylish materials used are superb. The stuff was very nice and helpful. The amenities are almost perfect (maybe one or two more hot tubs would be useful).

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9.5
Exceptional
1,700 reviews
Price from
US$356
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. Tea, coffee and cookies available. Nice sitting area for relaxing. Hot tub and sauna were amazing!

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9
Superb
2,151 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. Loa's Nest was the perfect way to end our trip in Iceland. Their guesthouse had extremely easy check in. The entire facility was clean and equipped with everything and more. I would highly recommend this guesthouse for all types of travellers.

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9.7
Exceptional
2,292 reviews
Price from
US$212
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. 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
1,584 reviews
Price from
US$75
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. The location, the aesthetics, the facilities.

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9.1
Superb
2,143 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
1,397 reviews
Price from
US$182
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 most amazing Location imaginable. Waking up to tje birds. Settings in hot tub watching the river and horses. I almost wished I enjoyed fishing

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9.4
Superb
1,058 reviews
Price from
US$320
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
1,234 reviews
Price from
US$253
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. It's a warm, welcoming and very clean place. The room was very cozy and the hosts were very friendly and helpful. The breakfast was delicious and with a lot of options. I really recommend this place.

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9.3
Superb
1,212 reviews
Price from
US$156
per night

Free WiFi is offered throughout Farmhotel. Free parking is also available on site.

Efstidalur Farmhotel has Icelandic horses for hire, which is an ideal way to explore the surrounding countryside. Lake Laugarvatn is 12 km away. The rooms were really nice and we were able to see the northern lights just outside. Perfect!

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9
Superb
1,020 reviews
Price from
US$220
per night

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