Title: TOP Cheap Hotels in Southern Iceland for 2026 | Expedia.co.uk [Southern Iceland Travel Guide](https://expedia.co.uk/Southern-Iceland.dx668923434895958016)[Hotels in Southern Iceland](https://expedia.co.uk/Southern-Iceland-Hotels.d668923434895958016.Travel-Guide-Hotels)[Holiday Rentals in Southern Iceland](https://expedia.co.uk/Southern-Iceland-Holiday-Rentals.d668923434895958016.Travel-Guide-HolidayRentals)[Flights to Southern Iceland](https://expedia.co.uk/Cheap-Flights-To-Southern-Iceland.d668923434895958016.Travel-Guide-Flights)[Southern Iceland Car Hire](https://expedia.co.uk/Compare-Cheap-Car-Hire-In-Southern-Iceland.d668923434895958016.Car-Hire-Guide)[Southern Iceland Holidays](https://expedia.co.uk/Southern-Iceland.d668923434895958016.Holidays-City-Breaks) ![Reynisfjara black sand beach in Iceland. Reynisfyal Mountains](https://images.trvl-media.com/place/668923434895958016/34e2edcf-ee2e-4b52-82cc-44f335b74458.jpg?impolicy=fcrop&w=1200&h=500&q=medium) # Find Cheap Hotels in Southern Iceland - ![](https://a.travel-assets.com/travel-assets-manager/pictogram-bex/light__price_find.svg) ### Change your mind Book hotels with free cancellation - ![](https://a.travel-assets.com/travel-assets-manager/pictogram-bex/light__deals.svg) ### Treat yourself Save instantly and earn perks with One Key [Learn about One Key](https://www.expedia.co.uk/welcome-one-key) - ![](https://a.travel-assets.com/travel-assets-manager/pictogram-bex/light__bed.svg) ### Be picky Search almost a million properties worldwide ## Check availability on Southern Iceland Cheap Hotels Tonight [6 Dec - 7 Dec](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2025-12-06&endDate=2025-12-07&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) Tomorrow [7 Dec - 8 Dec](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2025-12-07&endDate=2025-12-08&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) Next weekend [12 Dec - 14 Dec](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2025-12-12&endDate=2025-12-14&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) In two weeks [19 Dec - 21 Dec](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2025-12-19&endDate=2025-12-21&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) ## Top Southern Iceland Cheap Hotels ![Dinner served](https://images.trvl-media.com/lodging/20000000/19830000/19821200/19821200/e87aa1b6.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Reception](https://images.trvl-media.com/lodging/20000000/19830000/19821200/19821200/1ac9095c.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Flat-screen TV, heated floors](https://images.trvl-media.com/lodging/20000000/19830000/19821200/19821200/4c1d8561.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Room | In-room safe, desk, soundproofing, iron/ironing board](https://images.trvl-media.com/lodging/20000000/19830000/19821200/19821200/1be65a30.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Lighthouse Inn Suðurnesjabær 9.8/10 Exceptional (1000) "Staff was friendly and room was comfortable for our 2 night stay." ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Jedidiah £96 includes taxes & fees 7 Dec - 8 Dec [](https://www.expedia.co.uk/Reykjavik-Hotels-Lighthouse-Inn.h19821200.Hotel-Information) ![Standard Double or Twin Room | Desk, laptop workspace, blackout curtains, iron/ironing board](https://images.trvl-media.com/lodging/7000000/6570000/6567400/6567348/d854117b.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Daily continental breakfast (EUR 22 per person)](https://images.trvl-media.com/lodging/7000000/6570000/6567400/6567348/7d359fef.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Exterior](https://images.trvl-media.com/lodging/7000000/6570000/6567400/6567348/1a41ae95.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Quadruple Room | Desk, laptop workspace, blackout curtains, iron/ironing board](https://images.trvl-media.com/lodging/7000000/6570000/6567400/6567348/c88de584.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF Suðurnesjabær 8.8/10 Excellent (1650) "Great location and staff" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Murtuzo £138 includes taxes & fees 4 Jan - 5 Jan 2026 [](https://www.expedia.co.uk/Reykjavik-Hotels-Aurora-Hotel-At-Reykjavik-Keflavik-Airport-Terminal-KEF.h6567348.Hotel-Information) ![Family Room with Private Hot Tub and Sauna - Self Check-in | 1 bedroom, in-room safe, desk, cots/infant beds](https://images.trvl-media.com/lodging/13000000/12670000/12667800/12667760/ad994d96.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Room with Private Hot Tub and Sauna - Self Check-in | 1 bedroom, in-room safe, desk, cots/infant beds](https://images.trvl-media.com/lodging/13000000/12670000/12667800/12667760/bed07c12.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Superior Room With Sea View - Self Check in | 1 bedroom, in-room safe, desk, cots/infant beds](https://images.trvl-media.com/lodging/13000000/12670000/12667800/12667760/3a930bcc.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Front of property](https://images.trvl-media.com/lodging/13000000/12670000/12667800/12667760/dcf1ac3c.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Fisherman's Village Garðabær 9.2/10 Wonderful (1003) "Our stay was very nice" ![Canada](https://a.travel-assets.com/egds/marks/flags/ca.svg) Zack £92 includes taxes & fees 11 Dec - 12 Dec [](https://www.expedia.co.uk/Reykjavik-Hotels-Fishermans-Village.h12667760.Hotel-Information) ![Interior](https://images.trvl-media.com/lodging/123000000/122230000/122220900/122220827/41bada27.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Front of property](https://images.trvl-media.com/lodging/123000000/122230000/122220900/122220827/49f2a4e0.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Interior](https://images.trvl-media.com/lodging/123000000/122230000/122220900/122220827/3c62273d.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Interior](https://images.trvl-media.com/lodging/123000000/122230000/122220900/122220827/60be6474.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Blue Viking Pods Reykjanesbær 8.0/10 Very good (1) £41 includes taxes & fees 14 Dec - 15 Dec [](https://www.expedia.co.uk/Reykjanesbr-Hotels-Blue-Viking-Pods.h122220827.Hotel-Information) ![Restaurant](https://images.trvl-media.com/lodging/4000000/3480000/3475000/3474914/a21377d9.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/4000000/3480000/3475000/3474914/19bab706.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Restaurant](https://images.trvl-media.com/lodging/4000000/3480000/3475000/3474914/ca25aefb.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Hallway](https://images.trvl-media.com/lodging/4000000/3480000/3475000/3474914/8e3f9279.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Konvin Hotel by Reykjavik Keflavik Airport Reykjanesbær 8.6/10 Excellent (1095) "Great hotel" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Linying £89 includes taxes & fees 16 Dec - 17 Dec [](https://www.expedia.co.uk/Reykjavik-Hotels-BB-Hotel-By-Keflavik-Airport.h3474914.Hotel-Information) ![Exterior](https://images.trvl-media.com/lodging/18000000/17460000/17453500/17453402/ebdf15e4.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Fridge, microwave, coffee/tea maker, electric kettle](https://images.trvl-media.com/lodging/18000000/17460000/17453500/17453402/c8a88613.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![View from room](https://images.trvl-media.com/lodging/18000000/17460000/17453500/17453402/d9fe7447.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![32-inch flat-screen TV with digital channels, TV, Netflix](https://images.trvl-media.com/lodging/18000000/17460000/17453500/17453402/732983a3.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Bakki Hostel and Apartments Eyrarbakki 9.4/10 Exceptional (455) "It's a nice place." ![Canada](https://a.travel-assets.com/egds/marks/flags/ca.svg) HAKSOO £107 includes taxes & fees 8 Dec - 9 Dec [](https://www.expedia.co.uk/Eyrarbakki-Hotels-Bakki-Hostel-And-Apartments.h17453402.Hotel-Information) ![Daily buffet breakfast (ISK 2350 per person)](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/adcdc0fd.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Garden](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/9226b050.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Room, Private Bathroom | Free WiFi, bed sheets](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/18c9f525.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Reception](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/d8464176.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Adventure Hotel Hof Fagurholsmyri 8.4/10 Very good (542) "Amazing place!" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Anthony [](https://www.expedia.co.uk/Fagurholsmyri-Hotels-Adventure-Hotel-Hof.h22632426.Hotel-Information) ![Outdoor spa tub](https://images.trvl-media.com/lodging/13000000/12800000/12794300/12794262/ba6b496d.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Food court](https://images.trvl-media.com/lodging/13000000/12800000/12794300/12794262/ede565c9.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Suite | Hypo-allergenic bedding, in-room safe, desk, laptop workspace](https://images.trvl-media.com/lodging/13000000/12800000/12794300/12794262/da45442b.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby](https://images.trvl-media.com/lodging/13000000/12800000/12794300/12794262/1a2ce85b.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Fosshotel Glacier Lagoon Fagurholsmyri 9.4/10 Exceptional (1004) "Clean and modern room, well heated during winter and great breakfast that comes with the stay." ![Singapore](https://a.travel-assets.com/egds/marks/flags/sg.svg) Allan £142 includes taxes & fees 14 Dec - 15 Dec [](https://www.expedia.co.uk/Fagurholsmyri-Hotels-Fosshotel-Glacier-Lagoon.h12794262.Hotel-Information) ![Superior Double Room | View from room](https://images.trvl-media.com/lodging/23000000/22530000/22521100/22521073/611c4b2d.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/23000000/22530000/22521100/22521073/347231b8.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Standard Triple Room, 1 Bedroom, Private Bathroom | View from room](https://images.trvl-media.com/lodging/23000000/22530000/22521100/22521073/caa5c1a0.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Bar (on property)](https://images.trvl-media.com/lodging/23000000/22530000/22521100/22521073/55039f97.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Adventure Hotel Geirland Kirkjubaejarklaustur 9.0/10 Wonderful (351) "Pleasant staff, clean, orderly and modern amenities." ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Matthew [](https://www.expedia.co.uk/Kirkjubaejarklaustur-Hotels-Hotel-Geirland.h22521073.Hotel-Information) ![Porch](https://images.trvl-media.com/lodging/68000000/67450000/67447600/67447523/906e5dde.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Front of property](https://images.trvl-media.com/lodging/68000000/67450000/67447600/67447523/87716134.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Front of property](https://images.trvl-media.com/lodging/68000000/67450000/67447600/67447523/5a98d332.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Outdoor spa tub](https://images.trvl-media.com/lodging/68000000/67450000/67447600/67447523/4fb2311a.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Blue Hotel Fagrilundur - On The Golden Circle Bláskógabyggd 9.6/10 Exceptional (420) "We loved everything about this hotel. Very clean, large rooms, very quiet and all the amenities you would need. The hot tubs were a great bonus. And the breakfast was the best!" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Ella £93 includes taxes & fees 13 Dec - 14 Dec [](https://www.expedia.co.uk/Blaskogabyggd-Hotels-Blue-Hotel-Fagrilundur.h67447523.Hotel-Information) Lowest nightly price found within the past 24 hours based on a 1 night stay for 2 adults. Prices and availability subject to change. Additional terms may apply. [View all properties](https://expedia.co.uk/Hotel-Search?startDate=2025-12-20&endDate=2025-12-21®ionId=668923434895958016&adults=2&sort=BUDGET&openPlayBack=true) ## Find out more about Southern Iceland ### Discover cheap things to do in Southern Iceland Southern Iceland offers a trove of memorable experiences that won’t break the bank. Start your adventure at the iconic Seljalandsfoss waterfall, where you can walk behind the cascade for an unforgettable view—perfect for family photos. Just a short drive away, Skógafoss waterfall presents another stunning sight, and the surrounding area features a hiking trail that leads to even more scenic views, all free to explore. For a unique geological experience, visit the Sólheimasandur plane wreck, an eerie yet fascinating sight that requires a picturesque 4km walk from the parking area—ideal for those who enjoy a bit of adventure. If you’re keen on exploring the great outdoors, the black sand beaches of Reynisfjara near Vík are a must-see, where you can marvel at the basalt columns and take in the dramatic coastal scenery, all at no cost. When it comes to budget-friendly accommodation, consider staying in Vík, where a range of affordable hotels and guesthouses offer comfortable lodgings with easy access to these attractions. This charming village not only serves as a convenient base for day trips but also boasts local eateries where you can sample traditional Icelandic dishes without overspending. With stunning landscapes at your doorstep and a welcoming community, Southern Iceland is a delightful choice for a family adventure. ## How to get cheap hotels in Southern Iceland? ✅ The **length of stay** in Southern Iceland often varies depending on the nature of the trip, but many travellers opt to stay for several days or up to a week to take in Southern Iceland's notable landmarks and points of interest. ✅ If you're looking for **cheap hotels in Southern Iceland** in 2026, book your hotel well in advance. Reserving your stay at least a few weeks or months ahead of time can help you take advantage of amazing rates on cheap hotels in Southern Iceland, and if your plans change you can find many options of **[hotels with free cancelation](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&rfrr=Editorial.Tips&paymentType=FREE_CANCELLATION&sort=PRICE_RELEVANT).** ✅ To find affordable hotels in Southern Iceland on Expedia, start by entering your travel dates and the number of individuals in your group. Once you've provided this information, you can refine your search results by filtering for **[budget hotels in Southern Iceland](https://expedia.co.uk/Hotel-Search?regionId=668923434895958016&sort=PRICE_LOW_TO_HIGH&rfrr=Editorial.Tips).** ✅ Use the **filtering tools** offered by Expedia to refine your search results by location, **price limits, amenities such as [breakfast included](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&rfrr=Editorial.Tips&sort=PRICE_RELEVANT&mealPlan=FREE_BREAKFAST),** and other factors that matter to you. This will help you quickly locate the ideal budget-friendly hotel that fits your specific requirements. ✅ If you're looking to save money on a **cheap hotel in Southern Iceland,** the ideal time to go is usually during the off-season in Southern Iceland. On Expedia, you can find hotels **from £41\*.** ✅ Southern Iceland offers numerous **budget-friendly attractions and activities** for travellers, such as art and exhibits at free museums and galleries or exploring Southern Iceland on foot. ✅ One of the best ways to find **cheap hotels in Southern Iceland** is to search Expedia for properties that provide [**family-friendly**](https://expedia.co.uk/Hotel-Search?regionId=668923434895958016&rfrr=Editorial.Tips&sort=RECOMMENDED&travelerType=FAMILY) accommodations and features such as activities and complimentary meals, and then **[sort these by price.](https://expedia.co.uk/Hotel-Search?regionId=668923434895958016&rfrr=Editorial.Tips&sort=PRICE_LOW_TO_HIGH&travelerType=FAMILY)** \*Prices and availability are subject to change. Additional terms may apply. ## Top Southern Iceland Hotel Reviews ![Hotel Reykjavík Grand](https://images.trvl-media.com/lodging/1000000/50000/45500/45483/1f0fc067_y.jpg) ### Hotel Reykjavík Grand 10/10 Excellent "It's a nice hotel. Its clean and staff are all polite. Convenient for our all tour pick up is a plus. Decent breakfast." [](https://expedia.co.uk/Reykjavik-Hotels-Grand-Hotel-Reykjavik.h45483.Hotel-Information) ![Alda Hotel Reykjavik](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/940267ad_y.jpg) ### Alda Hotel Reykjavik 10/10 Excellent "Great service from the staff and the rooms are very clean!" [](https://expedia.co.uk/Reykjavik-Hotels-Alda-Hotel-Reykjavik.h8120033.Hotel-Information) ![Fosshotel Reykjavik](https://images.trvl-media.com/lodging/10000000/9040000/9031800/9031743/4c46e13b_y.jpg) ### Fosshotel Reykjavik 10/10 Excellent "Everyone was very helpful and accommodating. " [](https://expedia.co.uk/Reykjavik-Hotels-Fosshotel-Reykjavik.h9031743.Hotel-Information) ![Reykjavik Natura - Berjaya Iceland Hotels](https://images.trvl-media.com/lodging/1000000/20000/12800/12750/14bcaffe_y.jpg) ### Reykjavik Natura - Berjaya Iceland Hotels 10/10 Excellent "easy access, many tours picked us up at the hotel" [](https://expedia.co.uk/Reykjavik-Hotels-Icelandair-Hotel-Reykjavik-Natura.h12750.Hotel-Information) ![Center Hotels Arnarhvoll](https://images.trvl-media.com/lodging/2000000/1770000/1769700/1769638/77a398ee_y.jpg) ### Center Hotels Arnarhvoll 10/10 Excellent "Excellent but beds are small " [](https://expedia.co.uk/Reykjavik-Hotels-Center-Hotels-Arnarhvoll.h1769638.Hotel-Information) ![Hótel Berg](https://images.trvl-media.com/lodging/5000000/4250000/4241300/4241243/dd0aa9ef_y.jpg) ### Hótel Berg 10/10 Excellent "We had an over night stay here before our early flight in the morning. We enjoyed the heated pool and a fabulous meal in the restaurant. Had a great sleep before heading off. Thank you!" [](https://expedia.co.uk/Reykjavik-Hotels-Hotel-Berg.h4241243.Hotel-Information) ![Reykjavik Residence Hotel](https://images.trvl-media.com/lodging/5000000/4100000/4099900/4099809/658fb6cf_y.jpg) ### Reykjavik Residence Hotel 10/10 Excellent "Lovely clean apartments with great amenities and very central. " [](https://expedia.co.uk/Reykjavik-Hotels-Reykjavik-Residence-Hotel.h4099809.Hotel-Information) ![Reykjavik Marina - Berjaya Iceland Hotels](https://images.trvl-media.com/lodging/5000000/4830000/4828900/4828813/697cc188_y.jpg) ### Reykjavik Marina - Berjaya Iceland Hotels 10/10 Excellent "Staff is wonderful! Rooms clean! No noise heard from the working marina! Rooms small but sufficient for 2 adults. Would stay again!" [](https://expedia.co.uk/Reykjavik-Hotels-Icelandair-Hotel-Reykjavik-Marina.h4828813.Hotel-Information) ![Miðgarður by Center Hotels](https://images.trvl-media.com/lodging/10000000/9860000/9853500/9853419/1193c4a7_y.jpg) ### Miðgarður by Center Hotels 10/10 Excellent "Staff was incredibly friendly and helpful. Very comfortable travel for transgender travelers." 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