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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. Everything about the property, facilities & staff

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9.5
Exceptional
1,689 reviews
Price from
US$354
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. Excellent quiet location, comfortable beds, clean room, great breakfast and other hotel facilities (they do have an outdoor tub, but we didn't try it, maybe next time). Also we loved the little orangery where you can sit and have a snack and glance outside at the gorgeous Icelandic scenery. Should also be great for seeing the aurora. The hotel staff is great and provide you with excellent tips for your travels (we got a great tip on where to purchase real quality wool garments, thanks again!)

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9
Superb
2,150 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. Best guest house ever! Super friendly, super waffles, super Northern Lights, super clean, super cozy

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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. Great vibe, super friendly staff, we felt very welcome and well taken care of. Loved the stay!

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9
Superb
1,582 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. Very cool vibes, helpful and informative staff, clean and plenty of amenities

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9.1
Superb
2,142 reviews
Price from
US$47
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. Thank u for putting a washing machine and dryer! The hot tub was lovely. Anna was a wonderful host.

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9.2
Superb
1,391 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. Clean, beautiful surroundings, comfortable, nice staff

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9.4
Superb
1,067 reviews
Price from
US$319
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. We had a great stay at the guesthouse on top of the hill. The location is great next to the cross roads of Golden Circle and the road to south coast. The facilities were in really great shape and the rooms were comfy and clean.

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9.3
Superb
1,206 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 are cozy, nice view, good food, helpful staff. beautiful easy 10km hike to nearby waterfalls.

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9
Superb
1,022 reviews
Price from
US$220
per night

This boutique hotel is peacefully situated in the South Iceland, in the village of Kirkjubaejarklaustur, a 1-hour drive from Skaftafell and Reynisfjara Black Beach, and 15-minutes drive from Fjaðrárgljúfur canyon and Laki Craters. All rooms include a flat-screen TV, private bathrooms with premium bathroom amenities, Nespresso coffee-machines. The deluxe rooms were very nice and comfortable:) Breakfast spread was very good!

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9
Superb
1,281 reviews
Price from
US$276
per night

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