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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. Layout, location and restaurant.

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9.5
Exceptional
1,738 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. Very friendly and helpful team. Coffee machine and soft drinks continuously accessible and free of charge. Nice and cozy chill-out areas.

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9.1
Superb
2,112 reviews
Price from
US$170
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. The accommodation is clean and spacious, located in a picturesque area. It’s a very nice house with large rooms and bathrooms, a spacious kitchen, and available tea, coffee, and various sauces. In the morning, the host treats guests to delicious freshly baked waffles, which is a very nice touch. We were also lucky enough to see the Northern Lights.

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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. Very convenient location and everything is well maintained.

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9
Superb
1,232 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. Very close proximity to Seljalandsfoss and Gljufrabui waterfalls, about 8 minutes drive; good breakfast; clean toilets and showers; very nice decor and ambience of the place; and awesome, helpful staff-- most specially Lucia and Sole.

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9
Superb
1,548 reviews
Price from
US$72
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. Everything, the way they keep the place clean, quality of the beds and dorms, they even have a hot tub and sauna which is awesome.

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9.1
Superb
2,130 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
1,386 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. Excellent breakfast. Spectacular view

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9.4
Superb
1,018 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. Amazing location for seeing the northern lights, close to route 1, AMAZING breakfast, super clean

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9.3
Superb
1,219 reviews
Price from
US$155
per night

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