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

Budget Hotels in Southern Iceland, Iceland

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Check availability on Southern Iceland Budget Hotels

Tonight
Sep 17 - Sep 18
Tomorrow
Sep 18 - Sep 19
This weekend
Sep 18 - Sep 20
Next weekend
Sep 25 - Sep 27

Our top choices for Southern Iceland cheap hotels

A restaurant with wooden walls and large windows overlooking a body of water. Tables and chairs are arranged for dining.
A wooden interior with a bar area, wooden flooring, and potted plants.
A wooden interior with a long hallway, a central plant, and a view to the outside.
A modern interior with a wooden ceiling, leather sofas, black chairs, and a large abstract painting.

1. Lighthouse Inn

Lighthouse Inn
Suðurnesjabær
United States
Brianna
P9,339
P10,777 total
includes taxes & fees
Oct 12 - Oct 13
Lighthouse Inn
A restaurant with wooden tables, green upholstered chairs, pendant lighting, and a large painting on the wall.
A neatly made bed with two pillows, a bedside table with a phone, and a wall with vertical wooden slats.
A hallway with wooden walls, a bench, a table with a plant, and a fire extinguisher.
A restaurant entrance with a sign reading "TAKE OFF BISTRO".

2. Konvin Hotel by Reykjavik Keflavik Airport

Konvin Hotel by Reykjavik Keflavik Airport
Reykjanesbær
United States
Joseph
P9,786
P11,277 total
includes taxes & fees
Oct 11 - Oct 12
Konvin Hotel by Reykjavik Keflavik Airport
A row of black and white houses with a stone wall and a grassy hill.
A bedroom with a large bed, two bedside tables with lamps, a painting on the wall, and a view through a door.
A wooden staircase with a chair and a table in a room with wooden floors and a high ceiling.
A room with a large window offering a view of a grassy field and distant mountains.

3. Fisherman's Village

Fisherman's Village
Garðabær
United States
Michael
P8,659
P10,025 total
includes taxes & fees
Sep 27 - Sep 28
Fisherman's Village
A spacious dining area with multiple tables and chairs, a kitchen in the background, and hanging spherical light fixtures.
A building with large windows and a triangular roof, under a starry night sky with visible aurora borealis.
A spacious lounge area with modern furniture, pendant lighting, and a large window providing natural light.
A room with a view of the northern lights, a hot tub, and a staircase.

4. Hotel Gullfoss

Hotel Gullfoss
Bláskógabyggd
Canada
Patrick
Hotel Gullfoss
A modern hotel corridor with a wooden floor, a large potted plant, and a unique seating area.
A modern, well-lit room with a bed, sofa, and dining area, featuring large windows and a view of the city.
A modern building with a flat roof, large windows, and a garage door.
A modern room with a bed, a grey sofa, a dining table with chairs, a small kitchen area, and large windows.

5. Aska Hraun

Aska Hraun
Hafnarfjörður
United States
Sam
P5,985
P9,957 total
includes taxes & fees
Sep 20 - Sep 21
Aska Hraun
A dining area with a leather sofa, red chairs, and a glass display case with bird figurines.
A hotel room with two beds, a large window, wooden flooring, and a view of the outdoors.
A bar area with a wine rack, shelves with bottles, and a counter.
A building with multiple red-roofed units, a gravel driveway, and flags on the right.

6. Hotel Smyrlabjorg

Hotel Smyrlabjorg
Höfn
Canada
Joelle
P12,880
P15,166 total
includes taxes & fees
Oct 17 - Oct 18
Hotel Smyrlabjorg
A spacious room with large windows, wooden flooring, and modern furniture.
A dining area with wooden tables and chairs, large windows with a view of green fields and mountains, and hanging pendant lights.
A window with a view of a green field and mountains.
A modern building with large glass windows and a view of a mountainous landscape.

7. Fosshotel Vatnajokull

Fosshotel Vatnajokull
Höfn
United States
Anna
P13,599
P15,507 total
includes taxes & fees
Oct 18 - Oct 19
Fosshotel Vatnajokull

8. Eldey Airport Hotel

Eldey Airport Hotel
Reykjanesbær
Canada
CONSTANTIN
P7,535
P8,774 total
includes taxes & fees
Oct 14 - Oct 15
Eldey Airport Hotel
A building with multiple windows and a flat roof, surrounded by trees and a clear night sky.
A white building with a gravel path leading to it, surrounded by green grass and mountains in the background.
A restaurant with multiple tables and chairs, large windows offering a view of the outdoors, and a wooden interior.
A reception area with a counter, several chairs, a coffee table, and a lamp.

9. Hotel Skaftafell

Hotel Skaftafell
Skaftafell
Canada
Ken
P14,259
P16,241 total
includes taxes & fees
Oct 9 - Oct 10
Hotel Skaftafell
A room with a large window overlooking a wooden deck and a rocky shoreline.
A wooden deck with a view of the beach and ocean.
A restaurant with wooden tables and chairs, a bar area, and a view of the street.
A rocky shoreline with a wooden pier extending into calm waters during sunset.

10. Bakki Hostel and Apartments

Bakki Hostel and Apartments
Eyrarbakki
United States
Thangavel
P8,538
P9,888 total
includes taxes & fees
Oct 5 - Oct 6
Bakki Hostel and Apartments
View all properties

Top Southern Iceland Hotel Reviews

Konvin Hotel by Reykjavik Keflavik Airport

Konvin Hotel by Reykjavik Keflavik Airport

10/10 Excellent
"Great location and excellent staff."
stephen 1-night trip
Posted 13 hours ago
Konvin Hotel by Reykjavik Keflavik Airport
Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon

10/10 Excellent
"Bed were awesome, restaurant was delicious and the wake up calls for the northern lights worked great The rooms were nice and clean!"
Jeremy 2-night trip
Posted 17 hours ago
Fosshotel Glacier Lagoon
Hotel Reykjavík Grand

Hotel Reykjavík Grand

10/10 Excellent
"Grand is a lovely hotel on the east side. It was walking distance to the busy shopping district, Harbour area and city center Be aware there may some traffic noise if you're facing the road on the lower floors. The food is wonderful; the food and staff are wonderful. The only thing that would've made our stay better would've been having breakfast included. We would stay again."
Lynn 1-night trip
Posted 18 hours ago
Hotel Reykjavík Grand
Alda Hotel Reykjavik

Alda Hotel Reykjavik

10/10 Excellent
"We were traveling without a car and loved the location! Very walkable and the staff was so pleasant."
Sharon 2-night trip
Posted 1 day ago
Alda Hotel Reykjavik
Alva Hotel Brautarholt

Alva Hotel Brautarholt

10/10 Excellent
"Very clean hotel, Offers breakfast, but I did not use. Communications due to it being self check-in were very detailed and clear. Close to city points of interest. Quiet room with everything you need in a hotel room."
Donna 1-night trip
Posted 2 days ago
Alva Hotel Brautarholt