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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Check availability on Southern Peninsula Budget Hotels

This weekend
Sep 25 - Sep 27
Next weekend
Oct 2 - Oct 4

Our top choices for Southern Peninsula cheap hotels

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
A person in a swimming pool with a view of a cityscape and a bridge in the background.

2. Hótel Berg

Hótel Berg
4.0 star property
Reykjanesbær
9.4 out of 10, Exceptional, (1,139 reviews)
"Best breakfast on our trip"
United States
Christine
The price is P12,669
P14,477 total
includes taxes & fees
Oct 22 - Oct 23
Hótel Berg
A restaurant with wooden walls and large windows overlooking a body of water. Tables and chairs are arranged for dining.

3. Lighthouse Inn

Lighthouse Inn
3.5 star property
Suðurnesjabær
9.8 out of 10, Exceptional, (1,000 reviews)
"Close to the airport really cozy room great staff!"
United States
Brianna
The price is P8,702
P10,069 total
includes taxes & fees
Oct 25 - Oct 26
Lighthouse Inn
A hotel room with a bed, bedside tables, a TV, and a view of the beach.

4. Hotel Keilir by Reykjavik Keflavik Airport

Hotel Keilir by Reykjavik Keflavik Airport
3.0 star property
Reykjanesbær
7.2 out of 10, Good, (928 reviews)
"Beautiful views. Very helpful and friendly staff"
Canada
Kimbereley
The price is P10,347
P11,898 total
includes taxes & fees
Oct 8 - Oct 9
Hotel Keilir by Reykjavik Keflavik Airport
A person in a red swimsuit standing in a water feature with a glass barrier, surrounded by a checkered floor and a bar area with a glass railing.

5. Hotel Keflavik by Reykjavik Keflavik Airport

Hotel Keflavik by Reykjavik Keflavik Airport
4.0 star property
Reykjanesbær
8.8 out of 10, Excellent, (1,001 reviews)
"Great friendly staff, clean & elegant room/hotel, nice bar- always nice to have a happy hour!"
United States
Wendy
The price is P15,409
P17,517 total
includes taxes & fees
Oct 20 - Oct 21
Hotel Keflavik by Reykjavik Keflavik Airport
A modern building with a water channel running through it, surrounded by a barren landscape.

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
A buffet with various food items and beverages.

7. Start Hostel

Start Hostel
2.0 star property
Reykjanesbær
9.2 out of 10, Wonderful, (531 reviews)
"Room and beddings were clean and comfortable. Hostels are conveniently located near the airport. We stayed there the night before we fly back home."
United States
Wonsuk
The price is P9,748
P11,230 total
includes taxes & fees
Oct 8 - Oct 9
Start Hostel

8. Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport
5.0 star property
Reykjanesbær
9.0 out of 10, Wonderful, (55 reviews)
"Very nice suite, great breakfast"
United States
Lance
The price is P33,034
P37,077 total
includes taxes & fees
Oct 20 - Oct 21
Diamond Suites by Reykjavik Keflavik Airport
An entrance to a building with a colorful mural, a row of white chairs, and a clear sky.

9. ASTIN ER SVARID HOSTEL

ASTIN ER SVARID HOSTEL
1.0 star property
Keflavík
8.0 out of 10, Very good, (4 reviews)
"Room was clean, close to airport"
Canada
Darren
The price is P8,881
P10,267 total
includes taxes & fees
Sep 25 - Sep 26
ASTIN ER SVARID HOSTEL
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

Hotel Reykjavík Grand

Hotel Reykjavík Grand

10/10 Excellent
"⭐️⭐️⭐️⭐️⭐️ Wonderful Stay in Iceland We had a fantastic stay during our Iceland trip! The hotel was clean, comfortable, and welcoming, with everything we needed after long days of exploring Iceland. The staff were friendly and helpful, and the overall atmosphere was warm and relaxing. The location was convenient for exploring, and coming back to such a comfortable place after a full day of waterfalls, glaciers, and scenic drives made the experience even better. The room was well maintained, the bed was comfortable, and the service was excellent. Overall, it was a great experience and a memorable part of our Iceland adventure. We would happily stay here again and definitely recommend it to anyone visiting Iceland! 🇮🇸❤️ 5/5 — Highly recommended!"
Vivek 1-night trip
Posted 2 hours ago
Hotel Reykjavík Grand