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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. This place is brand new and amazing. The hot tubs and sauna that overlook the glacier are definitely the highlight. If you get lucky (like me) you might even get to see the aurora while sipping an excellent cocktail in the hot tub. Other than that all the staff were very kind and professional. The hotel's restaurant is great and offers amazing food made with local ingredients. Also their signature cocktails were delicious.

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9.5
Exceptional
1,708 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. Comfortable and clean room, quiet place, very comfortable bed and pillows, friendly staff, tasty breakfast, nice terrace for the rest

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9
Superb
2,149 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 host and her family here was most hospitable people and gave us ample tips in Icelandic places to visit since we were doing a 10 days of ring road with our 9 year old .And they made sure we had a good stay at his comfortable place and got us free waffles and coffee even though it was not part of the stay.

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9.7
Exceptional
2,290 reviews
Price from
US$211
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. Location is super, very nice staff, clean room. Nice to have coffee and tea in the room. W used breakfast in reccomend hostel.

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9
Superb
1,222 reviews
Price from
US$143
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. Just the perfect place in the perfect spot. Great to visit the south of the island, easy to find, calmed and perfect to relax. Nice staff and good food (both for breakfast and dinner).

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9
Superb
1,579 reviews
Price from
US$74
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 attention was excelent, everything well prepared and nice

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9.1
Superb
2,140 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. "Arbakki Farm House is a true hidden gem. A beautiful and peaceful place that instantly makes you feel at home. The atmosphere is warm and welcoming, with every detail thoughtfully arranged to create a sense of comfort and coziness. It's the perfect spot to unwind, reconnect with nature, and enjoy genuine hospitality. Thank you for such a heartfelt experience — we’ll definitely be back!"

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9.2
Superb
1,395 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. By far the most beautiful hotel we stayed in during our trip. Staff was very friendly and helpful. They upgraded our room and we had an amazing view. Room was clean and breakfast was very good with a lot of choices. They also have a restaurant for dinner which we didn’t try but seemed promising.

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9.4
Superb
1,053 reviews
Price from
US$318
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. Super friendly and helpful staff. Reasonable rates (for Iceland!) Warm,clean and comfortable. Very good breakfast including Icelandic marriage cake which was delicious.

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9.3
Superb
1,209 reviews
Price from
US$155
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
Superb
1,019 reviews
Price from
US$166
per night

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