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) ![](https://images.trvl-media.com/place/668923434895958016/34e2edcf-ee2e-4b52-82cc-44f335b74458.jpg?impolicy=fcrop&w=1200&h=500&q=medium) - ![](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 [20 Jan - 21 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-20&endDate=2026-01-21&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) Tomorrow [21 Jan - 22 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-21&endDate=2026-01-22&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) This weekend [23 Jan - 25 Jan](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-23&endDate=2026-01-25&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) Next weekend [30 Jan - 1 Feb](https://www.expedia.co.uk/Hotel-Search?regionId=668923434895958016&startDate=2026-01-30&endDate=2026-02-01&adults=2&rfrr=TG.LP.CheckPrices.Hotel&openPlayBack=true&travelerType=budget_property) ## Our top choices for Southern Iceland cheap hotels ![Restaurant](https://images.trvl-media.com/lodging/37000000/36800000/36796300/36796295/4578874a.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Front of property](https://images.trvl-media.com/lodging/37000000/36800000/36796300/36796295/c190bbd4.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Junior Room | View from room](https://images.trvl-media.com/lodging/37000000/36800000/36796300/36796295/ad5126d2.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Classic Single Room, Patio View | View from room](https://images.trvl-media.com/lodging/37000000/36800000/36796300/36796295/6a666d73.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Hotel Von [](https://www.expedia.co.uk/Reykjavik-Hotels-Von-Guldsmeden-Hotel.h36796295.Hotel-Information) Downtown Reykjavik 9.4/10 Exceptional (1,001 reviews) "Great staff and took care of us great!" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Rahul £109 includes taxes & fees 28 Jan - 29 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Von-Guldsmeden-Hotel.h36796295.Hotel-Information) ![Lobby sitting area](https://images.trvl-media.com/lodging/21000000/20530000/20522200/20522120/6f63978f.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Suite Small | In-room safe, desk, blackout curtains, free WiFi](https://images.trvl-media.com/lodging/21000000/20530000/20522200/20522120/f135dbff.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Suite Large | In-room safe, desk, blackout curtains, free WiFi](https://images.trvl-media.com/lodging/21000000/20530000/20522200/20522120/072df351.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/21000000/20530000/20522200/20522120/818ff58e.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### 201 Hotel [](https://www.expedia.co.uk/Reykjavik-Hotels-201-Hotel.h20522120.Hotel-Information) Kópavogur 8.6/10 Excellent (1,003 reviews) "Very easy check-in, helpful staff, clean room, and good breakfast." ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Tania £81 includes taxes & fees 30 Jan - 31 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-201-Hotel.h20522120.Hotel-Information) ![Sauna, hot tub, 3 treatment rooms, massages](https://images.trvl-media.com/lodging/46000000/45670000/45668900/45668818/41a280e5.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/46000000/45670000/45668900/45668818/e6c7307e.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Sauna, hot tub, 3 treatment rooms, massages](https://images.trvl-media.com/lodging/46000000/45670000/45668900/45668818/ded168bc.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Sauna, hot tub, 3 treatment rooms, massages](https://images.trvl-media.com/lodging/46000000/45670000/45668900/45668818/d3b104c7.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Grandi by Center Hotels [](https://www.expedia.co.uk/Reykjavik-Hotels-Grandi-By-Center-Hotels.h45668818.Hotel-Information) Vesturbær 9.4/10 Exceptional (1,421 reviews) "Very Nice hotel and the Spa is very nice as well" ![United Kingdom](https://a.travel-assets.com/egds/marks/flags/uk.svg) Kyle £153 includes taxes & fees 27 Jan - 28 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Grandi-By-Center-Hotels.h45668818.Hotel-Information) ![Daily buffet breakfast (ISK 3500 per person)](https://images.trvl-media.com/lodging/1000000/980000/978800/978797/318ceeaa.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Deluxe Double Room | In-room safe, desk, blackout curtains, iron/ironing board](https://images.trvl-media.com/lodging/1000000/980000/978800/978797/892fa7b2.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/1000000/980000/978800/978797/bdedb2a4.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Reception](https://images.trvl-media.com/lodging/1000000/980000/978800/978797/cfcede72.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Fosshotel Barón [](https://www.expedia.co.uk/Reykjavik-Hotels-Fosshotel-Baron.h978797.Hotel-Information) Downtown Reykjavik 8.6/10 Excellent (1,004 reviews) "Loved our room and very well located hotel " ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Elizeth £128 includes taxes & fees 22 Jan - 23 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Fosshotel-Baron.h978797.Hotel-Information) ![Suite, Harbour View (with Sauna & Gym Access) | Bathroom sink](https://images.trvl-media.com/lodging/23000000/22270000/22267000/22266982/aea50603.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Sauna](https://images.trvl-media.com/lodging/23000000/22270000/22267000/22266982/2de36707.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Junior Suite (with Sauna & Gym Access) | View from room](https://images.trvl-media.com/lodging/23000000/22270000/22267000/22266982/7507660f.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Restaurant](https://images.trvl-media.com/lodging/23000000/22270000/22267000/22266982/7025580f.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Exeter Hotel [](https://www.expedia.co.uk/Reykjavik-Hotels-Exeter-Hotel.h22266982.Hotel-Information) Downtown Reykjavik 9.4/10 Exceptional (1,003 reviews) "Great location, easy walk everywhere, great breakfast." ![Canada](https://a.travel-assets.com/egds/marks/flags/ca.svg) William £101 includes taxes & fees 25 Jan - 26 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Exeter-Hotel.h22266982.Hotel-Information) ![Indoor spa tub](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/8fff738a.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Property entrance](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/940267ad.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Reception](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/0b9e1226.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Hallway](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/d739eb2a.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Alda Hotel Reykjavik [](https://www.expedia.co.uk/Reykjavik-Hotels-Alda-Hotel-Reykjavik.h8120033.Hotel-Information) Downtown Reykjavik 9.4/10 Exceptional (1,167 reviews) "Clean room, nice staff, great location, very good breakfast and very quiet. I love this hotel. " ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Coral £146 includes taxes & fees 28 Jan - 29 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Alda-Hotel-Reykjavik.h8120033.Hotel-Information) ![Interior](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/dc3acbbf.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Reception hall](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/afb53e16.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Basic Double Room, Private Bathroom | View from room](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/3dd8a78c.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Property grounds](https://images.trvl-media.com/lodging/23000000/22640000/22632500/22632426/09e60615.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Adventure Hotel Hof [](https://www.expedia.co.uk/Fagurholsmyri-Hotels-Adventure-Hotel-Hof.h22632426.Hotel-Information) Fagurholsmyri 8.4/10 Very good (548 reviews) "Amazing place!" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Anthony £127 includes taxes & fees 21 Jan - 22 Jan [](https://www.expedia.co.uk/Fagurholsmyri-Hotels-Adventure-Hotel-Hof.h22632426.Hotel-Information) ![Lobby lounge](https://images.trvl-media.com/lodging/1000000/50000/45500/45483/bdb8839d.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/1000000/50000/45500/45483/3496f53f.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Banquet hall](https://images.trvl-media.com/lodging/1000000/50000/45500/45483/6bbca6c7.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Junior Suite | In-room safe, desk, laptop workspace, blackout curtains](https://images.trvl-media.com/lodging/1000000/50000/45500/45483/ffa4cbda.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Hotel Reykjavík Grand [](https://www.expedia.co.uk/Reykjavik-Hotels-Grand-Hotel-Reykjavik.h45483.Hotel-Information) Laugardalur 9.0/10 Wonderful (1,004 reviews) "Spacious rooms. Hotel is pretty and staff was great." ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Carmen £154 includes taxes & fees 25 Jan - 26 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Grand-Hotel-Reykjavik.h45483.Hotel-Information) ![Property entrance](https://images.trvl-media.com/lodging/70000000/69950000/69944500/69944462/ad91ea6e.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Family Quadruple Room, Accessible, Private Bathroom | Desk, soundproofing, iron/ironing board, free WiFi](https://images.trvl-media.com/lodging/70000000/69950000/69944500/69944462/530fbfa9.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Premium Triple Room with 1 Double Bed and 1 Single Bed | Desk, soundproofing, iron/ironing board, free WiFi](https://images.trvl-media.com/lodging/70000000/69950000/69944500/69944462/f9c7f8b7.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Standard Double Room, Private Bathroom | Desk, soundproofing, iron/ironing board, free WiFi](https://images.trvl-media.com/lodging/70000000/69950000/69944500/69944462/f7376b63.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### ABC Hotel by Reykjavik Keflavik Airport [](https://www.expedia.co.uk/Reykjavik-Hotels-ABC-Hotel.h69944462.Hotel-Information) Reykjanesbær 7.4/10 Good (789 reviews) "Clean room, friendly staff, didn't have my charger handy and staff helped me out with their charger" ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Zoran [](https://www.expedia.co.uk/Reykjavik-Hotels-ABC-Hotel.h69944462.Hotel-Information) ![Rooftop pool](https://images.trvl-media.com/lodging/5000000/4250000/4241300/4241243/dd0aa9ef.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Dinner served, sea views ](https://images.trvl-media.com/lodging/5000000/4250000/4241300/4241243/fdb6be03.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Lobby sitting area](https://images.trvl-media.com/lodging/5000000/4250000/4241300/4241243/5a732c98.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ![Property entrance](https://images.trvl-media.com/lodging/5000000/4250000/4241300/4241243/683fd670.jpg?impolicy=fcrop&w=357&h=201&p=1&q=medium) ### Hótel Berg [](https://www.expedia.co.uk/Reykjavik-Hotels-Hotel-Berg.h4241243.Hotel-Information) Reykjanesbær 9.4/10 Exceptional (1,243 reviews) "Clean, great hot tub. Wish there was more varity for breakfast but overall great place to stay. " ![United States](https://a.travel-assets.com/egds/marks/flags/us.svg) Karolina £147 includes taxes & fees 29 Jan - 30 Jan [](https://www.expedia.co.uk/Reykjavik-Hotels-Hotel-Berg.h4241243.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=2026-02-03&endDate=2026-02-04®ionId=668923434895958016&adults=2&travelerType=budget_property&sort=RECOMMENDED&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 £81\*.** ✅ 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 ![Alda Hotel Reykjavik](https://images.trvl-media.com/lodging/9000000/8130000/8120100/8120033/940267ad_y.jpg) ### Alda Hotel Reykjavik 10/10 Excellent "Great breakfast!" [](https://expedia.co.uk/Reykjavik-Hotels-Alda-Hotel-Reykjavik.h8120033.Hotel-Information) ![Center Hotels Plaza](https://images.trvl-media.com/lodging/2000000/1380000/1379300/1379245/e01fc18c_y.jpg) ### Center Hotels Plaza 10/10 Excellent "Wonderful stay great location" [](https://expedia.co.uk/Reykjavik-Hotels-Center-Hotels-Plaza.h1379245.Hotel-Information) ![Fosshotel Barón](https://images.trvl-media.com/lodging/1000000/980000/978800/978797/bdedb2a4_y.jpg) ### Fosshotel Barón 10/10 Excellent "Stay was super great! Was very clean and safe. It was convenient to other things and staff was very attentive " [](https://expedia.co.uk/Reykjavik-Hotels-Fosshotel-Baron.h978797.Hotel-Information) ![Konvin Hotel by Reykjavik Keflavik Airport](https://images.trvl-media.com/lodging/4000000/3480000/3475000/3474914/e16d592d_y.jpg) ### Konvin Hotel by Reykjavik Keflavik Airport 10/10 Excellent "Rented a car from Kovin Car Rental (Just beside the Kovin Hotel)" [](https://expedia.co.uk/Reykjavik-Hotels-BB-Hotel-By-Keflavik-Airport.h3474914.Hotel-Information) ![Fosshotel Glacier Lagoon](https://images.trvl-media.com/lodging/13000000/12800000/12794300/12794262/ba6b496d_y.jpg) ### Fosshotel Glacier Lagoon 10/10 Excellent "This hotel is super nice highly recommended, the restaurant is amazing great food the rooms are small but great with high ceilings I will definitely stay there again! " [](https://expedia.co.uk/Fagurholsmyri-Hotels-Fosshotel-Glacier-Lagoon.h12794262.Hotel-Information) ![Hotel Reykjavík Grand](https://images.trvl-media.com/lodging/1000000/50000/45500/45483/1f0fc067_y.jpg) ### Hotel Reykjavík Grand 10/10 Excellent "The stay was amazing. The staff was exceptional. Treated us like Family. " [](https://expedia.co.uk/Reykjavik-Hotels-Grand-Hotel-Reykjavik.h45483.Hotel-Information) ![Fosshotel Reykjavik](https://images.trvl-media.com/lodging/10000000/9040000/9031800/9031743/4c46e13b_y.jpg) ### Fosshotel Reykjavik 10/10 Excellent "Very friendly and helpful staff, everyone was super professional. Breakfast was well prepared, clean and fresh food everyday, lots of gluten free choices.Attentive service when we needed anything extra. Would definitely stay again! " [](https://expedia.co.uk/Reykjavik-Hotels-Fosshotel-Reykjavik.h9031743.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 "Great hotel with regards to room,breakfast, staff,check in/out,location..bus stop 13 outside and the all important trips pick up bus stop 12 a few minutes around the block. Never had time to use the excellent spa area as was only on a short break." [](https://expedia.co.uk/Reykjavik-Hotels-Migarur-By-Center-Hotels.h9853419.Hotel-Information) ![Þingholt by Center Hotels](https://images.trvl-media.com/lodging/2000000/1610000/1601500/1601404/w2876h1620x0y0-dd64cbbc_y.jpg) ### Þingholt by Center Hotels 10/10 Excellent "The staff was amazing. Always ready to assit and very polite." 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