A coastal landscape with green hills, a rocky cliff, and a calm sea.

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Our top choices for Southern Iceland cheap hotels

1. The Garage

The Garage
3.0 star property
Rangárþing eystra
10.0 out of 10, Exceptional, (1,178 reviews)
"Great stay"
Canada
Bao Long
The price is £156
includes taxes & fees
10 Nov - 11 Nov
The Garage

2. The Barn - Hostel

The Barn - Hostel
2.0 star property
Vik I Myrdal
9.4 out of 10, Exceptional, (613 reviews)
"Great location"
Canada
Ankit
The price is £68
includes taxes & fees
16 Nov - 17 Nov
The Barn - Hostel

3. The Fox Hostel

The Fox Hostel
2.0 star property
Hrífunesvegur
9.0 out of 10, Wonderful, (173 reviews)
"Nice location, good restaurant"
United States
Joe
The price is £55
includes taxes & fees
16 Nov - 17 Nov
The Fox Hostel

4. Hotel Geysir

Hotel Geysir
4.0 star property
Bláskógabyggd
9.8 out of 10, Exceptional, (899 reviews)
"Great hotel."
Australia
Sharon
The price is £162
includes taxes & fees
10 Dec - 11 Dec
Hotel Geysir

5. Sólheimahjáleiga Guesthouse

Sólheimahjáleiga Guesthouse
3.0 star property
Ytri Sólheimar
9.6 out of 10, Exceptional, (448 reviews)
"Excellent property, beautiful rooms. All the amenities are present very clean bathrooms and the breakfast was really good."
Canada
Sergey
The price is £105
includes taxes & fees
1 Dec - 2 Dec
Sólheimahjáleiga Guesthouse

6. Volcano hotel

Volcano hotel
3.0 star property
Vik I Myrdal
9.4 out of 10, Exceptional, (559 reviews)
"Wonderful property with lovely staff and delicious breakfast!"
United States
Kerstin
The price is £160
includes taxes & fees
10 Nov - 11 Nov
Volcano hotel

7. Brú Guesthouse

Brú Guesthouse
3.0 star property
Rangárþing eystra
9.8 out of 10, Exceptional, (542 reviews)
"Gorgeous location!"
United States
Jeremy
The price is £153
includes taxes & fees
10 Nov - 11 Nov
Brú Guesthouse

8. Magma Hotel

Magma Hotel
3.0 star property
Kirkjubaejarklaustur
9.8 out of 10, Exceptional, (438 reviews)
"This was an absolutely gorgeous property. We thoroughly enjoyed our stay."
United States
Kristen
The price is £193
includes taxes & fees
14 Nov - 15 Nov
Magma Hotel

9. Hotel Selja

Hotel Selja
3.5 star property
Rangárþing eystra
9.4 out of 10, Exceptional, (320 reviews)
"Great place. Breakfast was wonderful. Had issues with the TV and the towels were frayed."
United States
Susan
The price is £93
includes taxes & fees
15 Nov - 16 Nov
Hotel Selja

10. Loa´s Nest Guesthouse

Loa´s Nest Guesthouse
3.0 star property
Rangarthing ytra
10.0 out of 10, Exceptional, (246 reviews)
"Great place to stay. So clean and quiet, good kitchen, yummy waffles and owner and staff so helpful and friendly."
Canada
Selma
The price is £113
includes taxes & fees
11 Nov - 12 Nov
Loa´s Nest Guesthouse

11. Hamar - Puffin Cottages & Rooms

Hamar - Puffin Cottages & Rooms
2.0 star property
Rangárþing eystra
9.6 out of 10, Exceptional, (65 reviews)
"Beautiful property"
United States
Wenda
The price is £95
includes taxes & fees
22 Nov - 23 Nov
Hamar - Puffin Cottages & Rooms

12. Hotel Vík í Mýrdal

Hotel Vík í Mýrdal
3.5 star property
Vik I Myrdal
9.4 out of 10, Exceptional, (1,335 reviews)
"Really good place to stay"
United States
Cesar A
The price is £156
includes taxes & fees
12 Nov - 13 Nov
Hotel Vík í Mýrdal

13. Vík Apartments

Vík Apartments
3.5 star property
Vik I Myrdal
9.8 out of 10, Exceptional, (899 reviews)
"Awesome place to stay. Would definitely stay here again."
United States
Holly
The price is £183
includes taxes & fees
1 Dec - 2 Dec
Vík Apartments

14. Blue Hotel Fagrilundur - On The Golden Circle

Blue Hotel Fagrilundur - On The Golden Circle
3.5 star property
Bláskógabyggd
9.6 out of 10, Exceptional, (522 reviews)
"Excellent location near really great restaurants and the Tomato Farm was fantastic!"
United States
Marne
The price is £109
includes taxes & fees
16 Nov - 17 Nov
Blue Hotel Fagrilundur - On The Golden Circle

15. Hotel Katla by Keahotels

Hotel Katla by Keahotels
3.0 star property
Vik I Myrdal
9.0 out of 10, Wonderful, (1,002 reviews)
"Loved the sauna"
United States
Andrew
The price is £142
includes taxes & fees
15 Nov - 16 Nov
Hotel Katla by Keahotels

16. South Central Guesthouse

South Central Guesthouse
2.5 star property
Selfoss
9.8 out of 10, Exceptional, (102 reviews)
"Very nice host lady, nicely equipped kitchen, multiple shared washrooms, and cozy place , very good outdoor setup as well."
Canada
Atul
The price is £96
includes taxes & fees
23 Nov - 24 Nov
South Central Guesthouse

17. Skálakot Manor hotel

Skálakot Manor hotel
4.0 star property
Rangárþing eystra
9.8 out of 10, Exceptional, (156 reviews)
"Fabulous. The property is unique, food amazing, staff friendly, and bed comfortable. Really enjoyed our stay."
United States
Shannon
The price is £303
includes taxes & fees
11 Nov - 12 Nov
Skálakot Manor hotel

18. Hotel Loa

Hotel Loa
3.0 star property
Rangárþing eystra
9.6 out of 10, Exceptional, (325 reviews)
"Amazing Hotel!"
United Kingdom
Evandro Campos de
The price is £120
includes taxes & fees
22 Nov - 23 Nov
Hotel Loa

19. The Highland Center Hrauneyjar

The Highland Center Hrauneyjar
3.0 star property
Rangárþing ytra
8.4 out of 10, Very good, (144 reviews)
"Nice spot to stay the night at before the Highlands"
United States
minda
The price is £148
includes taxes & fees
10 Dec - 11 Dec
The Highland Center Hrauneyjar

20. Hrifunes Nature Park

Hrifunes Nature Park
3.5 star property
Hrífunesvegur
9.6 out of 10, Exceptional, (133 reviews)
"The unit was very clean, loved the sauna but due to weather we were not able to use Hot tub. Great location for Northern lights if weather permitted."
United States
Tammy
The price is £229
includes taxes & fees
11 Nov - 12 Nov
Hrifunes Nature Park
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 wealth of affordable experiences for budget-conscious travellers eager to explore this stunning region. Begin your adventure at breathtaking waterfalls, where you can marvel at the cascading waters and take mesmerizing photos without spending a dime. For a more adventurous outing, consider exploring the otherworldly landscapes of volcanic craters and lava fields, perfect for a picnic or a leisurely stroll while soaking in the unique geology. If you're interested in culture, the charming local villages provide a glimpse into Icelandic life, often featuring free art installations and community events. Don't miss the opportunity to visit black sand beaches, where you can relax and enjoy the dramatic coastal scenery at no cost. Finally, take time to hike along the picturesque coastal cliffs, where you can observe seabirds and enjoy panoramic views that are simply unforgettable. When it comes to accommodation, consider staying in nearby towns that offer a variety of budget-friendly hotels, allowing you to explore these attractions with ease. After a day of discovery, unwind in your comfortable room, and prepare for another day of adventure in Southern Iceland. With its captivating sights and affordable lodging options, you're sure to create lasting memories without breaking the bank.

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 £86*.

✅  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