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

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Check availability on Southern Iceland Cheap Hotels

Tonight
13 Oct - 14 Oct
Tomorrow
14 Oct - 15 Oct
This weekend
16 Oct - 18 Oct
Next weekend
23 Oct - 25 Oct

Our top choices for Southern Iceland cheap hotels

A person sitting on a bench in a hallway with wooden paneling and red doors, reading a book titled 'Living Earth'.
A kitchen with a stove, a kettle, and a cup on the counter.
A rocky coastline with waves crashing onto the shore.
A cozy library with bookshelves, a reading area with chairs, and a wooden desk.

1. The Fox Hostel

The Fox Hostel
Hrífunesvegur
United States
Joe
£56
includes taxes & fees
1 Nov - 2 Nov
The Fox Hostel
A modern interior with wooden flooring, black brick walls, and large windows offering a city view. Tables and chairs are arranged for dining.
A bar area with a brick wall, bar stools, and a counter with bottles.
A modern bar area with a long counter, four black chairs, and a large mirror above the counter.
A bar area with a brick counter, wooden stools, and a view of the ocean through large windows.

2. The Barn - Hostel

The Barn - Hostel
Vik I Myrdal
Canada
Ankit
£78
includes taxes & fees
1 Nov - 2 Nov
The Barn - Hostel
A modern building with a grey facade, a wooden accent wall, and a large window.
A conference room with large windows, a whiteboard, and a poster of animals.
A patio area with round tables and chairs, potted plants, and a sliding glass door leading to an indoor space.
A reception area with a fireplace, a baby changing station, and a map of the hostel.

3. Höfn HI Hostel

Höfn HI Hostel
Höfn
United States
Anna
£67
includes taxes & fees
1 Nov - 2 Nov
Höfn HI Hostel
A stainless steel kitchen with a central island, overhead ventilation, and a row of pots below.
A modern building with a clear sky and mountains in the background.
A parking area with cars, a building labeled "Entrance Restaurant & Reception," and a waterfall in the background.
A staircase with dark carpeted steps leading to a landing, adjacent to a window with a view of a hilly landscape.

4. Skogar Hostel

Skogar Hostel
Rangárþing eystra
United States
Aidan
£88
includes taxes & fees
6 Nov - 7 Nov
Skogar Hostel
A building with multiple windows and a flat roof, under a night sky with green aurora lights.
A hallway with a mirror, a door with emergency exit signs, and a fire extinguisher.
A room with a beige sofa, a glass coffee table, a black chair, and a small orange table.
A compact kitchen with a white table and chairs, a microwave, a toaster, and a sink.

5. Hostel Fjordur

Hostel Fjordur
Hafnarfjörður
United States
Kanchan
£71
includes taxes & fees
13 Nov - 14 Nov
Hostel Fjordur
A modern living room with a dark sofa, a round coffee table, and several potted plants.
A dining area with wooden tables and chairs, pendant lighting, and artwork on the walls.
A modern hotel room with a skylight, a bed, a bedside table with a lamp, a mirror, a sink, and a framed picture on the wall.
A multi-story building with a yellow facade, white trim, and a central entrance.

6. Old Town Reykjavik

Old Town Reykjavik
Downtown Reykjavik
Canada
Tatiana
£65
includes taxes & fees
10 Nov - 11 Nov
Old Town Reykjavik
A modern building with a blue roof and multiple windows, labeled 'START'.
A building with a reception area, marked parking spaces, and a view of distant mountains.
A breakfast setting with toast, egg, cereal, fruit, and juice on a table.
A modern living room with a large map on the wall, comfortable seating, and a large green plant.

7. Start Hostel

Start Hostel
Reykjanesbær
Canada
Jessica
£105
includes taxes & fees
3 Nov - 4 Nov
Start Hostel
A modern bedroom with a black bed, a wooden floor, a fur rug, a bedside table with a vase, and a hanging light fixture.
A modern kitchen with wooden cabinets, a black sink, and a microwave.
A modern lounge area with seating arrangements, a wooden table, and a large window with a view of the outside.
A parking lot with several cars and a building with multiple windows.

8. Bus Hostel Reykjavik

Bus Hostel Reykjavik
Hlíðar
United States
Deborah
£84
includes taxes & fees
4 Nov - 5 Nov
Bus Hostel Reykjavik
A two-story house with a snow-covered roof and a white picket fence.
A kitchen with a microwave, stove, and checkered backsplash.
A wooden deck with a metal railing, overlooking a street with buildings and a mountain in the background.
A staircase with white balusters and a white handrail, leading to a door with a brass doorknob.

9. Refurinn Reykjavik Guesthouse - Hostel

Refurinn Reykjavik Guesthouse - Hostel
Vesturbær
United States
Justina
£98
includes taxes & fees
26 Oct - 27 Oct
Refurinn Reykjavik Guesthouse - Hostel
A restaurant with wooden flooring, a bar area with bottles, and a view of the street.
A hotel room with a large bed, a TV, and a view of an outdoor seating area through a window.
A storefront with a glass door, potted plants, and a sign for a restaurant.
A wine cellar with wooden shelves and a bench.

10. Hotel Von

Hotel Von
Downtown Reykjavik
United States
Paulo
£118
includes taxes & fees
2 Nov - 3 Nov
Hotel Von
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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 £90*.

✅  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

Reykjavik Residence Apartment Hotel

Reykjavik Residence Apartment Hotel

8/10 Good
"Great location in central Reykjavik for amenities. A bit of a walk from reception to whichever building you are in. No drama. Rooms well equipped and comfortable. All you need."
Mark 4-night trip
Posted 12 hours ago
Reykjavik Residence Apartment Hotel
Alva Hotel Brautarholt

Alva Hotel Brautarholt

10/10 Excellent
"Location is 10 minute walk from the center. There is new staff no check-in that was surprising at first. Otherwise a clean safe enjoyable stay . Bed was very comfortable."
Chris 2-night trip
Posted 1 day ago
Alva Hotel Brautarholt
Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon

10/10 Excellent
"The rooms felt very modern and clean. It’s a little secluded which was part of its charm. The hot tub and sauna areas were nice after a long day outside in the cold. Before leaving, we visited the property’s private waterfall and that was a treat too!"
Megan 1-night trip
Posted 2 days ago
Fosshotel Glacier Lagoon
Hotel Reykjavík Grand

Hotel Reykjavík Grand

8/10 Good
"Need a USB plug in to charge our phones"
GEORGE 4-night trip
Posted 2 days ago
Hotel Reykjavík Grand
Center Hotels Plaza

Center Hotels Plaza

10/10 Excellent
"Excellent location and very helpful staff."
Marilyn 3-night trip
Posted 2 days ago
Center Hotels Plaza

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