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Our top choices for Southern Iceland cheap hotels

Blue Viking Pods

Blue Viking Pods
1.5 star property
Reykjanesbær
9.4 out of 10, Exceptional, (18 reviews)
"Clean and convenient for what we needed. "
United States
Elizabeth
The price is £50
includes taxes & fees
21 May - 22 May
Blue Viking Pods

Konvin Hotel by Reykjavik Keflavik Airport

Konvin Hotel by Reykjavik Keflavik Airport
3.0 star property
Reykjanesbær
8.6 out of 10, Excellent, (1,147 reviews)
"Good rooms. Close to airport."
United States
Michael
The price is £97
includes taxes & fees
27 Apr - 28 Apr
Konvin Hotel by Reykjavik Keflavik Airport

Lighthouse Inn

Lighthouse Inn
3.5 star property
Suðurnesjabær
9.8 out of 10, Exceptional, (1,000 reviews)
"As before, great location, warmand safe, near airport."
United Kingdom
Mike
The price is £106
includes taxes & fees
27 Apr - 28 Apr
Lighthouse Inn

Adventure Hotel Geirland

Adventure Hotel Geirland
3.0 star property
Kirkjubaejarklaustur
9.0 out of 10, Wonderful, (367 reviews)
"Clean room, nice staff and good breakfast options"
Canada
Simran
The price is £94
includes taxes & fees
25 Apr - 26 Apr
Adventure Hotel Geirland

Hotel Jökull

Hotel Jökull
3.0 star property
Höfn
8.8 out of 10, Excellent, (666 reviews)
"Good hôtel...no problem, easy access and service"
Canada
Jean
The price is £114
includes taxes & fees
10 May - 11 May
Hotel Jökull

Hotel Boli Keflavik

Hotel Boli Keflavik
2.0 star property
Reykjanesbaer
8.6 out of 10, Excellent, (8 reviews)
"We had a good time."
Germany
Timo
The price is £90
includes taxes & fees
28 Apr - 29 Apr
Hotel Boli Keflavik

Fosshotel Núpar

Fosshotel Núpar
3.0 star property
Kalfafell
8.4 out of 10, Very good, (1,002 reviews)
"Great location and views."
United States
Angela
The price is £129
includes taxes & fees
25 Apr - 26 Apr
Fosshotel Núpar

Hotel Loa

Hotel Loa
3.0 star property
Rangárþing eystra
9.6 out of 10, Exceptional, (162 reviews)
"Nice stop off. Clean hotel. Great spot to see Northern lights."
United Kingdom
Samantha
The price is £118
includes taxes & fees
24 Apr - 25 Apr
Hotel Loa

Fisherman's Village

Fisherman's Village
2.5 star property
Garðabær
9.2 out of 10, Wonderful, (1,000 reviews)
"Unique and stunning location, very convenient parking, clean quirky rooms. Loved our stay, thank you. "
United Kingdom
Jonathan
The price is £99
includes taxes & fees
29 Apr - 30 Apr
Fisherman's Village

Hótel Dyrhólaey

Hótel Dyrhólaey
3.0 star property
Vik I Myrdal
9.2 out of 10, Wonderful, (1,001 reviews)
"This is a great place to stay close to Vik, The morning sunrise can be phenomenal from the parking lot. Very close to the endless black beach and other attractions. Have a nice restaurant. I recommend this lodging."
United States
Anthony
The price is £123
includes taxes & fees
27 Apr - 28 Apr
Hótel Dyrhólaey
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.

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.

✅  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.

✅  Use the filtering tools offered by Expedia to refine your search results by location, price limits, amenities such as breakfast included, 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 £50*.

✅  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 accommodations and features such as activities and complimentary meals, and then sort these by price.

*Prices and availability are subject to change. Additional terms may apply.

Top Southern Iceland Hotel Reviews