A geothermal spa with multiple pools, a wooden bridge, and a modern building in the background.

Budget Hotels in Southern Peninsula

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Our top choices for Southern Peninsula cheap hotels

Property entrance

1. ABC Hotel by Reykjavik Keflavik Airport

ABC Hotel by Reykjavik Keflavik Airport
3.0 star property
Reykjanesbær
7.4 out of 10, Good, (789 reviews)
"Great location and value. "
United States
john
ABC Hotel by Reykjavik Keflavik Airport
Rooftop pool

2. Hótel Berg

Hótel Berg
4.0 star property
Reykjanesbær
9.4 out of 10, Exceptional, (1,187 reviews)
"Great place to stay near the airport. If I need to stay in Keflavík in future, I would strongly consider staying here again."
United States
John
The price is P16,356
P18,550 total
includes taxes & fees
Sep 1 - Sep 2
Hótel Berg
Restaurant

3. Lighthouse Inn

Lighthouse Inn
3.5 star property
Suðurnesjabær
9.8 out of 10, Exceptional, (1,016 reviews)
"Cute hotel by the lighthouse with great views and delicious breakfast!"
United States
Fung
The price is P11,144
P12,765 total
includes taxes & fees
Sep 8 - Sep 9
Lighthouse Inn
Egyptian cotton sheets, premium bedding, minibar, in-room safe

4. Hotel Keilir by Reykjavik Keflavik Airport

Hotel Keilir by Reykjavik Keflavik Airport
3.0 star property
Reykjanesbær
7.2 out of 10, Good, (892 reviews)
"excellent location close to the airport with free drop off included"
United States
Aymeric
The price is P15,940
P18,089 total
includes taxes & fees
Aug 25 - Aug 26
Hotel Keilir by Reykjavik Keflavik Airport
Sauna, hot tub, steam room, 1 treatment room, massages

5. Hotel Keflavik by Reykjavik Keflavik Airport

Hotel Keflavik by Reykjavik Keflavik Airport
4.0 star property
Reykjanesbær
8.8 out of 10, Excellent, (1,004 reviews)
"Staff is amazing, rooms were great and a good breakfast"
United States
Adam
The price is P17,341
P19,644 total
includes taxes & fees
Sep 10 - Sep 11
Hotel Keflavik by Reykjavik Keflavik Airport
Exterior

6. The Retreat at Blue Lagoon Iceland

The Retreat at Blue Lagoon Iceland
5.0 star property
Grindavik
9.8 out of 10, Exceptional, (172 reviews)
"2nd time staying here, does not disappoint, everything is perfect."
United States
Christopher
The Retreat at Blue Lagoon Iceland
Food and drink

7. Start Hostel

Start Hostel
2.0 star property
Reykjanesbær
9.4 out of 10, Exceptional, (517 reviews)
"Nice place to spend night before going home"
Canada
Annie
The price is P13,069
P14,902 total
includes taxes & fees
Aug 18 - Aug 19
Start Hostel
Couples treatment rooms, sauna, hot tub, steam room, massages

8. Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport
5.0 star property
Reykjanesbær
9.0 out of 10, Wonderful, (51 reviews)
"Amazing experience with all from the staff including( front desk, breakfast, shuttle driver). Beautiful rooms, clean, and only 10min to the airport."
United States
MARIUS C
The price is P42,726
P47,821 total
includes taxes & fees
Sep 9 - Sep 10
Diamond Suites by Reykjavik Keflavik Airport
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.
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Top Southern Peninsula Hotel Reviews

Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF

Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF

10/10 Excellent
"The Aurora Hotel is a short walk from KEF airport. Basically walk out the west door and take the cross walk past the parking lot and you are there. I gave the condition of the hotel a 4 star instead of a 5 star only because of the exterior where you walk in the entrance. We almost walked past it because it didnt look like a front entrance (but it was). However the staff were wonderful. Valence at the front desk was so lovely and helped us out on our first night when we booked two rooms and we were all arriving at different times and on our final night, once again she made sure we had rooms next to one another. There is a young man who is on the housekeeping staff on the 6th floor who carried a very heavy duffle bag in the door for us/very thoughtful. The only downside is food is very expensive but if you have time for breakfast pre-buy it because it is very good and self serve with an assortment of coffees, much needed with early flights and opens at around 4am and ends at 10am. The rooms were very clean/lovely. Definitely the perfect spot to stay at by the airport."
HEATHER 1-night trip
Posted 1 hour ago
Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF