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Featured cheap hotel destinations

Destination inspiration for your trip – find a cheap hotel

Hvolsvöllur

6 cheap hotels

Höfn

4 cheap hotels

Selfoss

3 cheap hotels

Laugarvatn

3 cheap hotels

Fludir

3 cheap hotels

The best cheap hotels in South Iceland

Check out our selection of great cheap hotels in South Iceland

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Náttúra Yurtel

Haukadalur

Offering mountain views, Náttúra Yurtel in Haukadalur features accommodations and a terrace. Housed in a building dating back to 2019, this luxury tent offers free Wifi and free private parking.

C
Claucio
From
Brazil
The yurtel was very comfortable and spacious. The breakfast was good and close to the yurtel. Very good if you look for nature and some good chance to see the northern lights.
Scored out of 10, guest rating 9.2
Wonderful - What previous guests thought, 1,734 reviews
Price from
$171.15
1 night, 2 adults

Bjork Guesthouse

Laugarvatn

Bjork Guesthouse enjoys a location in Laugarvatn, 24 miles from Gullfoss Waterfall and 18 miles from Ljósafoss.

A
Anna T
From
Czech Republic
Very nice renovated room with fridge, kettle and tea/coffee. Super clean spacious bathroom. Locatiin easy to find, great detailed communication from owner made the stay excellent.
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 1,413 reviews
Price from
$129.98
1 night, 2 adults

Midgard Base Camp

Hvolsvöllur

Located in Hvolsvöllur and with Seljalandsfoss reachable within 13 miles, Midgard Base Camp provides concierge services, non-smoking rooms, a shared lounge, free WiFi throughout the property and a...

C
Cielo
From
Netherlands
Great place to stay. The woman at the entrance is super friendly and gave us lots of good tips. The place is nice, comfortable with different spaces to enjoy and relax.
Scored out of 10, guest rating 9.1
Wonderful - What previous guests thought, 1,914 reviews
Price from
$145.16
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 center is a 50-minute drive away.

d
daria
From
Romania
Everything. We had a nice little chat with the owner when checking in and found out quite a lot things about Iceland and the surrounding areas. The room was amazing, we have been upgraded to a One Bedroom Apartment, which had everything you could need for a longer stay. Clean and quiet rooms, kitchen came equipped with pans, dishes, cutlery, a kettle and a coffee machine, as well as stove and microwave so we were able to cook our meals. We spent 8 nights in 8 different accommodations across Iceland and this one was by far the best one. We wish to return here soon!
Scored out of 10, guest rating 9.1
Wonderful - What previous guests thought, 1,231 reviews
Price from
$170.01
1 night, 2 adults

Höfn Hostel

Höfn

Overlooking Höfn Harbor 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.

J
Joanna
From
Poland
Very nice and clean place, great location!
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 2,729 reviews
Price from
$87.86
1 night, 2 adults

Efra Sel Hostel

Fludir

Located in Fludir, 16 miles from Geysir, Efra Sel Hostel provides accommodations with a garden, free private parking, a shared lounge and a terrace. The property has a shared kitchen and free WiFi.

R
Ronald
From
United States
Our 9-day journey to Iceland was all-too-short, but our decision to spend the middle third of our journey in Fludir was a wise one. As it turned out, we were briefly snowed-in during our stay, so we were fortunate to have Efra-Sel as our cozy refuge. The guesthouse features a fabulous living-room window that overlooks this dramatic area, and its well-stocked kitchen, its squeaky-clean bathrooms, its ample & comfortable bed, & its easy parking left us feeling fortunate we'd found this town gem. We were close to an excellent Ethiopian restaurant (in the middle of rural Iceland!) and one of our favorite dining experiences of our entire trip, Farmer's Bistro, where twice we practically foundered on mushrooms. Most memorable of all was the nearby Gamla Laugin--the "secret lagoon" that I discovered on a snowy morning run. While Gamla Laugin is hardly a secret any longer, it provided one of our most memorable, essential Icelandic afternoons as we warmed in its warm waters while snow fell on us. A little off the beaten Golden Circle tourist route, Efra-Sel and Fludir in general come highly recommended.
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 237 reviews
Price from
$72.27
1 night, 2 adults

South Central Guesthouse

Selfoss

South Central Guesthouse in Selfoss provides accommodations with a garden and a shared lounge. With garden views, this accommodation provides a terrace and a swimming pool.

E
Estefania
From
Mexico
I had the chance go have my own private room despite it being a shared property, everything was clean and the host was nice
Scored out of 10, guest rating 9.2
Wonderful - What previous guests thought, 763 reviews
Price from
$114.31
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.

J
Joana
From
Portugal
Great stay! The house is very cozy and extremely clean. Good common areas, warm and cozy room. Quiet location. This was was a beautiful cozy place to come back to in the end of the day, with comfy sofas to zip a warm tea and photo albums to dive into.
Scored out of 10, guest rating 9.1
Wonderful - What previous guests thought, 294 reviews
Price from
$111.26
1 night, 2 adults

Old Airline Guesthouse

Höfn

Located by the harbor in Höfn village, Oldairline Guest house offers a shared kitchen/lounge, plus free WiFi and parking. Jökulsárlón glacier lagoon is a 1-hour drive away.

J
James
From
Ireland
Excellent stay and very welcoming host, best place we stayed in Iceland so far
Scored out of 10, guest rating 9.1
Wonderful - What previous guests thought, 302 reviews
Price from
$138.82
1 night, 2 adults

Guesthouse Dyngja

Höfn

Guesthouse Dyngja is offering accommodations in Höfn. This property offers access to a patio and free private parking. At the guest house, all units include a outdoor furniture.

N
Niramol
From
Singapore
Good facilities with very new kitchen utensils. Location is also very close to many restaurants. Room is comfortable and clean. Not too crowded in the house.
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 809 reviews
Price from
$97.22
1 night, 2 adults
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Scored out of 10, guest rating 8.7
Excellent - What previous guests thought, 5,418 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 8.8
Excellent - What previous guests thought, 684 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 7.8
Good - What previous guests thought, 1,234 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 9.1
Wonderful - What previous guests thought, 1,914 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 8.8
Excellent - What previous guests thought, 2,261 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 1,402 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 2,729 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 9.1
Wonderful - What previous guests thought, 1,231 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 8.5
Very Good - What previous guests thought, 1,628 reviews

Popular with guests booking cheap hotels in South Iceland

Scored out of 10, guest rating 8.9
Excellent - What previous guests thought, 1,564 reviews

FAQs about cheap hotels in South Iceland

Cheap hotels that guests love in South Iceland

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Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 1,413 reviews
Great location Very clean Comfortable beds
Guest review byHeather
Group
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 809 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 byJacqueline
Family with young children
Scored out of 10, guest rating 8.5
Very Good - What previous guests thought, 1,628 reviews
Room and shared bathrooms were very clean during our stay and guests constellation. Breakfast is very decent. Location is great.
Guest review byJackline
Family with young children
Avg. price/night: $136.20
Scored out of 10, guest rating 8.8
Excellent - What previous guests thought, 686 reviews
Newly renovated guesthouse. Spotlessly clean, cozy, warm, specious common area, fully equipped kitchen, everything needed for cooking, coffee, tea, milk and much more...Three bathrooms . Jacuzzi. Easy check in. Nice and quiet area, Convenient location for the Golden circle. Great value for money. Highly recommended.
Guest review byGalina
Young couple
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 2,729 reviews
Nice and clean room with a comfortable bed. Despite its small size, it was suitable for two people. The curtain fits very well on the windows, it can be almost completely darkened at night, which helps a lot in the summer. The bathroom was very close and was always very clean. The kitchen was well equipped, you could cook anything (toaster, oven, hob, kettle, dishes, plates, tools, etc.). I would gladly recommend it to anyone looking for the cheapest accommodation in Höfn.
Guest review byViviána
Group
Scored out of 10, guest rating 9.0
Wonderful - What previous guests thought, 1,402 reviews
The location, was very clean, the welcome cake and the unlimited free coffee/tea
Guest review byMarina
Young couple
Scored out of 10, guest rating 8.9
Excellent - What previous guests thought, 1,564 reviews
I like the price! The cheapest room we booked in Iceland. The girl that greeted us was very friendly. It's like a mix of guest house and hostel. If you don't have much expectations you will be fine ☺️ Very nice beautiful farm location to have a short night rest. It has a kitchen, 2 shared bathrooms with hand soap, shower and big parking space outside. Easy access, check in. Room was warm. Clean sheets and towels. For a short budget friendly stay in a warm place, close to points of interest I do recommend it!
Guest review byDionysios
Young couple
Avg. price/night: $131.58
Scored out of 10, guest rating 9.2
Wonderful - What previous guests thought, 763 reviews
A lovely location, we stopped here on our first day in Iceland. It has got everything you need, very clean and comfortable.
Guest review byMartina
Young couple
Avg. price/night: $193.91
Scored out of 10, guest rating 7.8
Good - What previous guests thought, 589 reviews
The accommodation was very decent and located in a quiet area. Everything was very clean. Just a few minutes' walk from the accommodation is a horse farm, and Eyrarbakki is a very interesting village with a rich history. If you're looking for an affordable place to stay near the Golden Circle, this is a great option.
Guest review byStefan
Family with young children
Scored out of 10, guest rating 8.8
Excellent - What previous guests thought, 2,261 reviews
Absolutely stunning location, I can’t emphasise this enough. We were lucky enough to experience some of the aurora borealis just a short drive from the guesthouse. The rooms are very clean and warm in the winter, and the breakfast included in the price is a real plus and, from our experience, this is quite rare in Iceland. Probably the most memorable accommodation from our whole trip.
Guest review byJames
Group