Search cheap hotels in South Iceland

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Featured cheap hotel destinations

Destination inspiration for your trip – find a cheap hotel

Selfoss

93 cheap hotels

Hella

38 cheap hotels

Hvolsvöllur

31 cheap hotels

Höfn

25 cheap hotels

Fludir

15 cheap hotels

Reykholt

15 cheap hotels

Vestmannaeyjar

13 cheap hotels

Laugarvatn

12 cheap hotels

Vík

9 cheap hotels

Hveragerði

9 cheap hotels

Ölfus

9 cheap hotels

Kirkjubæjarklaustur

8 cheap hotels

Veiðilundur

6 cheap hotels

Laugaras

6 cheap hotels

Arabaer

6 cheap hotels

The best cheap hotels in South Iceland

Check out our pick of great cheap hotels in South Iceland

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Náttúra Yurtel

Haukadalur

Náttúra Yurtel has mountain views, free WiFi and free private parking, set in Haukadalur, 4 km from Geysir.

E
Elena
From
Spain
the staff is super nice, very attent and responsive, yurts are very comfortable, fantastic ubication, breakfast very good! everything was excellent!
Scored out of 10, guest rating 9.2
Superb - What previous guests thought, 1,801 reviews
Price from
US$347.79
1 night, 2 adults

Bjork Guesthouse

Laugarvatn

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.

J
Jevgenija
From
Switzerland
The apartment is very modern, clean, nice, and well-equipped. We had everything we needed for our stay in the rooms and bathroom, as well as the fridge in our room. By the way, the snack and drink fridge in the corridor was also an amazing idea! The owners are very friendly and nice; they provided us with very useful information and instructions we needed for our stay, and they were always there to respond quickly to our questions, etc. What's more, it was so nice to receive their little welcome gift: Icelandic chocolate! We also loved this little charming city very much. We hope to come back again one day. Highly recommended! P.S. the location is amazing!
Scored out of 10, guest rating 9.0
Superb - What previous guests thought, 1,294 reviews
Price from
US$268.74
1 night, 2 adults

Paradise Cave Hostel & Guesthouse

Hvolsvöllur

Set in Hvolsvöllur, 3.5 km from Seljalandsfoss, Paradise Cave Hostel & Guesthouse offers accommodation with a garden, free private parking and a bar.

S
Sangeeta
From
Singapore
Everything about this hotel was amazing especially the location in front of a waterfall.... kitchen was clean, bathroom too but one floor it had one big bathroom, another two bathrooms.
Scored out of 10, guest rating 9.0
Superb - What previous guests thought, 1,508 reviews
Price from
US$221.58
1 night, 2 adults

Midgard Base Camp

Hvolsvöllur

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...

A
Amy
From
United States
I loved the responsiveness and friendliness of the staff. Even before I arrived in iceland, they responded to my queries in a timely manner and also never made me feel like my questions were trivial.
Scored out of 10, guest rating 9.1
Superb - What previous guests thought, 2,102 reviews
Price from
US$306.99
1 night, 2 adults

Bakki Apartments & Hostel

Eyrarbakki

Bakki Apartments & Hostel offers dorm rooms and self-catering apartments by the sea in Eyrarbakki village. WiFi and parking are free. Reykjavík city centre is a 50-minute drive away.

A
Aleksandra
From
Poland
1) great place, 2)clean, 3) very well equipped, 4) great contact.
Scored out of 10, guest rating 9.0
Superb - What previous guests thought, 1,522 reviews
Price from
US$207.27
1 night, 2 adults

Höfn Hostel

Höfn

Overlooking Höfn Harbour and Vatnajökull Glacier, this hostel features a guest kitchen, BBQ area and laundry facilities. Staff can help arrange glacier tours, as well as boat and snowmobile trips.

S
Silvana
From
Canada
Beyond our expectations of a hostel. Everything was new , clean and well done.
Scored out of 10, guest rating 9.0
Superb - What previous guests thought, 2,827 reviews
Price from
US$200.24
1 night, 2 adults

Efra Sel Hostel

Fludir

Located in Fludir, 25 km from Geysir, Efra Sel Hostel provides accommodation with a garden, free private parking, a shared lounge and a terrace. The accommodation offers a shared kitchen and free...

C
Chiara
From
Italy
Perfect accommodation, couldn't ask for anything more.The room was cosy. The kitchen is more equipped than my own. Beautiful dining area with a big window. Clean and curated bathroom. Also we had to cancel one of the nights we booked and they were kind enough to give us a full refund even if it was just one day before. I think that if every guest used the kitchen then it might get crowded, but on the night we were there it was just another couple of people, so it was perfect.
Scored out of 10, guest rating 9.1
Superb - What previous guests thought, 132 reviews
Price from
US$169.80
1 night, 2 adults

South Central Guesthouse

Selfoss

Offering a garden and quiet street view, South Central Guesthouse is situated in Selfoss, 48 km from Geysir and 44 km from Ljosifoss.

E
Eleonora
From
Lithuania
Looks way better than in photos. Lovely place in nature. Shared kitchen is spacious, clean, with all the needed kitchenware. Host is extremely friendly. Loved it!
Scored out of 10, guest rating 9.2
Superb - What previous guests thought, 831 reviews
Price from
US$166.87
1 night, 2 adults

Spói Guesthouse

Hvolsvöllur

Spói Guesthouse is a recently renovated guest house in Hvolsvöllur, where guests can make the most of its garden and shared lounge.

k
kvetoslava
From
Slovakia
cozy rooms, clean bathrooms and nice vibe
Scored out of 10, guest rating 9.2
Superb - What previous guests thought, 303 reviews
Price from
US$234.20
1 night, 2 adults

Guesthouse Dyngja

Höfn

Guesthouse Dyngja is located in Höfn and offers barbecue facilities. This property offers access to a patio and free private parking.

T
Tiziana
From
Belgium
Exceptionally clean. Also very new! Prime location, next to a top restaurant in the harbour. Beautiful staying in Höfn!
Scored out of 10, guest rating 9.1
Superb - What previous guests thought, 838 reviews
Price from
US$210.78
1 night, 2 adults
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FAQs about cheap hotels in South Iceland

Cheap hotels that guests love in South Iceland

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Avg. price/night: US$139.35
Scored out of 10, guest rating 8.1
Very good - What previous guests thought, 677 reviews
Comfortable room with its own bath and toilet. Great location close to many tourist spots. Close to restaurants and shopping. Comfy bed. The bathroom had a warm towel dryer, which was great as all my clothes got wet from hiking in the rain. Fridge in room. Water cooker and coffee and mugs in the room. Overall a good budget choice if you don't plan to spend time there during the day.
Guest review by
Ina
Solo traveller
Avg. price/night: US$142.28
Scored out of 10, guest rating 9.0
Superb - What previous guests thought, 1,294 reviews
Great location Very clean Comfortable beds
Guest review by
Heather
Group
Scored out of 10, guest rating 9.2
Superb - What previous guests thought, 307 reviews
The location was beautiful. All of the instructions were easy and communication was great. The property was very clean, comfortable and quiet. We could have stayed longer.
Guest review by
Andrew
Family with young children
Scored out of 10, guest rating 9.6
Exceptional - What previous guests thought, 385 reviews
Warming welcome from the owner, in person. The flat is spacious and was ideal location near bakery, shops, takeaway food. In July with long days being able to walk to the Vik black sand beach is very convenient even at 10pm ! . Waffles dough on arrival was a great addition.
Guest review by
SOPHIE
Family with young children
Scored out of 10, guest rating 9.4
Superb - What previous guests thought, 17 reviews
The house was the best we booked last years: well equipped, very clean, comfortable and fit to requirements of a family. We felt ourself at home and definitely will come back soon. Garden and hot tube was an extra surprize. Location is also perfect.
Guest review by
Gyorgy
Family with young children
Avg. price/night: US$105.39
Scored out of 10, guest rating 9.1
Superb - What previous guests thought, 838 reviews
Perfect location just next to popular Pakkhus restaurant (be there early to queue). We have booked 2 rooms and the host is very accomodating, she arranged 2 rooms on the first floor which makes it easier for us to use the same common toilet. Place is very clean and the kitchen is so well equipped, great coffee machine and cookies . Good place to mingle with other guests. EV charger just behind the apartment.
Guest review by
Jacqueline
Family with young children
Scored out of 10, guest rating 9.3
Superb - What previous guests thought, 149 reviews
Very convenient Great location Very clean Well equipped
Guest review by
Luc3514
Young couple
Avg. price/night: US$185.49
Scored out of 10, guest rating 9.0
Superb - What previous guests thought, 970 reviews
Very clean, the staff was extremely friendly, car can be parked very close to the room, location is beautiful, they integrate the cabins in the environment as much as possible,... Gass station with small diner and small grocery section at 2km (N1). The food at their bistro was absolutely amazing. It's on the pricey side, but it's definitely worth the money.
Guest review by
Evelien
Family with young children
Scored out of 10, guest rating 9.2
Superb - What previous guests thought, 183 reviews
Very nice location, in nature but close to a town. This isn't a hotel, this is a guest house with a key box, so don't expect all the facilities a regular hotel would have, you're probably not even gonna see staff. This is however very private, clean, affordable room with just enough space for 2. Very nice.
Guest review by
Evelien
Family with young children
Avg. price/night: US$339.59
Scored out of 10, guest rating 9.5
Exceptional - What previous guests thought, 596 reviews
The peaceful location The gorgeous barn. The cozy tents Everything is spotlessly clean.
Guest review by
Jackie
People with friends