Cheap Hotels in Southern Iceland from $56

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Top Southern Iceland Cheap Hotels

Lighthouse Inn

3.5 star property
Suðurnesjabær
9.8 out of 10, Exceptional, (1000)
"Staff was friendly and room was comfortable for our 2 night stay."
United States
Jedidiah
$112 nightly
The price is $131
Dec 8 - Dec 9
Total with taxes and fees
Lighthouse Inn

Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF

3.0 star property
Suðurnesjabær
8.8 out of 10, Excellent, (1651)
"Great location and staff"
United States
Murtuzo
$160 nightly
The price is $184
Jan 4 - Jan 5, 2026
Total with taxes and fees
Aurora Hotel at Reykjavik-Keflavik Airport Terminal KEF

Fisherman's Village

2.5 star property
Garðabær
9.2 out of 10, Wonderful, (1003)
"Our stay was very nice"
Canada
Zack
$104 nightly
The price is $122
Dec 12 - Dec 13
Total with taxes and fees
Fisherman's Village

Blue Viking Pods

1.5 star property
Reykjanesbær
8.0 out of 10, Very Good, (1)
$44 nightly
The price is $56
Jan 6 - Jan 7, 2026
Total with taxes and fees
Blue Viking Pods

Konvin Hotel by Reykjavik Keflavik Airport

3.0 star property
Reykjanesbær
8.6 out of 10, Excellent, (1095)
"Great hotel"
United States
Linying
$120 nightly
The price is $139
Dec 9 - Dec 10
Total with taxes and fees
Konvin Hotel by Reykjavik Keflavik Airport

Bakki Hostel and Apartments

3.0 star property
Eyrarbakki
9.4 out of 10, Exceptional, (455)
"It's a nice place."
Canada
HAKSOO
$122 nightly
The price is $142
Dec 8 - Dec 9
Total with taxes and fees
Bakki Hostel and Apartments

Adventure Hotel Hof

2.5 star property
Fagurholsmyri
8.4 out of 10, Very Good, (542)
"Amazing place!"
United States
Anthony
$128 nightly
The price is $148
Dec 8 - Dec 9
Total with taxes and fees
Adventure Hotel Hof

Fosshotel Glacier Lagoon

4.0 star property
Fagurholsmyri
9.4 out of 10, Exceptional, (1004)
"Clean and modern room, well heated during winter and great breakfast that comes with the stay."
Singapore
Allan
$182 nightly
The price is $208
Dec 14 - Dec 15
Total with taxes and fees
Fosshotel Glacier Lagoon

Adventure Hotel Geirland

3.0 star property
Kirkjubaejarklaustur
9.0 out of 10, Wonderful, (351)
"Pleasant staff, clean, orderly and modern amenities."
United States
Matthew
$103 nightly
The price is $120
Dec 9 - Dec 10
Total with taxes and fees
Adventure Hotel Geirland

Blue Hotel Fagrilundur - On The Golden Circle

3.5 star property
Bláskógabyggd
9.6 out of 10, Exceptional, (420)
"We loved everything about this hotel. Very clean, large rooms, very quiet and all the amenities you would need. The hot tubs were a great bonus. And the breakfast was the best!"
United States
Ella
$114 nightly
The price is $133
Dec 9 - Dec 10
Total with taxes and fees
Blue Hotel Fagrilundur - On The Golden Circle
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.

Find out more about Southern Iceland

Discover cheap things to do in Southern Iceland

Southern Iceland is a paradise for budget-conscious travelers eager to explore its natural wonders without breaking the bank. Begin your adventure at the iconic Seljalandsfoss, a stunning waterfall where you can walk behind the cascading water for a unique perspective—best of all, it's free to enjoy! Just a short drive away, the majestic Skógafoss waterfall invites visitors to climb its staircase for breathtaking views, an experience that feels rewarding yet costs nothing. For those who love the great outdoors, the black sand beaches of Reynisfjara near Vík offer a picturesque spot to witness the dramatic sea stacks and powerful waves, with no admission fees. If you're keen on hiking, the trails around Þingvellir National Park not only provide stunning landscapes but are also free to access, allowing families to immerse themselves in Iceland's history and geology. After a day of exploration, stay in the charming town of Vík, where affordable hotels provide cozy accommodations and easy access to these attractions. Here, you can enjoy local cuisine at budget-friendly eateries that serve hearty Icelandic dishes, making it a perfect base for your Southern Iceland adventure. With attentive service and the comfort of being surrounded by nature, your family will have a memorable stay while keeping costs low.

How can I get cheap hotels in Southern Iceland?

Best tips to find a cheap hotel in Southern Iceland

  1. If you're looking to travel to Southern Iceland on a budget, you'll be happy to know that you can find hotels for as low as $56. Of course, that price is affected by amenities, star rating, and even the time of year you visit. At most, hotel prices can be as high as $208. Staying a short amount of time in Southern Iceland is an effective way to reduce hotel costs.

  2. When you cut your vacation down to just a few days, you don't have to worry as much about hotel prices since you don't have that many nights to stay. For budget hotels in Southern Iceland, 3 to 4 days should be all the nights you need. That's generally enough to enjoy the city's top attractions, though there's certainly enough to do to warrant a week-long trip.

  3. When booking cheap hotel rooms in Southern Iceland, it's typically best to book about 3 weeks in advance. Book further in advance than that and you could be paying too much for your room, as hotels will often overestimate future demand. However, if you wait too long, you might find that the hotel has been completely booked.

  4. When you utilize search filters on Expedia, you'll be able to narrow down your results in a flash. These search filters cover a wide variety of factors you may be interested in when it comes to finding a cheap hotel in Southern Iceland, including amenities such as Free Breakfast, 2-star rating, or proximity to local attractions. You can even set filters for price limits to ensure that all the displayed results are within your budget.

Top Southern Iceland Hotel Reviews