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The best cheap hotels in South Iceland

Check out our selection of great cheap hotels in South Iceland

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Review score

Wonderful: 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 hotel is a very high level establishment. Food at the restaurant is highly recommended.

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9.5
Exceptional
1,693 reviews
Price from
$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. Beautiful spot with great amenities. Customer service was amazing and breakfast was one of the best we had in Iceland.

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9.1
Wonderful
2,146 reviews
Price from
$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. What an amazing overnight stay at this family run hotel! Loved freshly made waffles in the morning, by the owners. The place felt like home and extremely clean.

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9.7
Exceptional
2,290 reviews
Price from
$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. Ricardo was a very nice host, see you in Italy some day! The whole place is amazing, views are stunning and we had a great dinner - lamb soup and pizza!

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9
Wonderful
1,582 reviews
Price from
$77
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 good camp and friendly staff. Highly recommended

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9.1
Wonderful
2,146 reviews
Price from
$41
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. We loved everything. The place is beautiful, very cozy, with a lot of charm & beautiful views in the room as well as the whole house. The common kitchen is super nice, well equipped, and a good place to talk with Anna. Breakfast was wonderful. And, there is a hot tub for guests.

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9.2
Wonderful
1,394 reviews
Price from
$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. A hot tub and a view were amazing, also very pleased by breakfast and small cakes :) Very relaxing, great location, I loved the stay overall.

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9.4
Wonderful
1,060 reviews
Price from
$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. Every thing was great Thanks

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9
Wonderful
1,229 reviews
Price from
$226
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. Very clean and comfortable, the rooms were small but nice, shared bathrooms were always available, excellent WiFi and outstanding breakfast with smoked salmon and everything else! Close to Selfoss’ restaurants and supermarkets.

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9.3
Wonderful
1,210 reviews
Price from
$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. Perfect location on the Golden Circle. The restaurant is unique. Good panorama from the room. Warm, clean and confortable. Kind and helpful staff.

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9
Wonderful
1,020 reviews
Price from
$220
per night

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