Cheap Hotels in South Iceland

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Enjoy South Iceland on a Budget

Trying to plan a trip to South Iceland without blowing your entire budget on the hotel room? Luckily, is here to help. We have 38 cheap South Iceland hotels for you to choose from, with prices starting at just $37/night!

In the last hour, we've had 5 bookings, the most popular choices were:

1. Puffin Nest Capsule Hostel
2. Snotra Hostel
3. Dilksnes Guesthouse
4. Guesthouse Heba
5. Brekkugerdi Guesthouse

So hurry and book now so we can get you the best room available! With budget hotels in South Iceland averaging just $142/night, don't let room prices keep you from experiencing all that South Iceland has to offer.

We've tried to make booking an affordable South Iceland hotel simple. Best place to start is by having a look through the top 10 cheap hotels trending right now in South Iceland in the box to the right. Make sure you use our traveller reviews to ensure you know exactly what you're getting out of your hotel room. It's understandable to be cautious when looking for cheap hotel rooms - you don't want to pay more than you should, but you also want to make sure the room is comfortable, clean, etc. That's one of the many reasons we take customer feedback so seriously (not only do we show you our customer's hotel reviews, we also use Expedia's and TripAdvisor's!). To help you quickly narrow your search, here's a quick list of the best cheap South Iceland hotels for:

1. Cleanliness: Puffin Nest Capsule Hostel
2. Service: Puffin Nest Capsule Hostel
3. Comfort: Puffin Nest Capsule Hostel
4. Condition: Puffin Nest Capsule Hostel

If you're sightseeing, you may only be after a basic hotel, but its location will be crucial to you. gives you detailed maps of the South Iceland area and each landmark and transportation option to allow you to book the cheapest hotel in South Iceland nearest the attractions you actually care about. You can even search outside the city and find budget hotels across Iceland.

If you're simply looking for the best deal on South Iceland accommodations and make sure you get the most for your money, our budget South Iceland hotels can also be filtered by amenity, star rating or by theme, so you can find anything from the ideal cheap business hotel or an economy hotel in South Iceland with a swimming pool, gym or even a free breakfast.

And as always, at we strive to make it as easy as possible to save money on every booking. We offer our Price Guarantee on most booking. Plus we offer 3 more ways to save:

1. Rewards - Stay 10 nights, get 1 free*
2. Deals & Discounts - Search over 10,000 deals!
3. promo codes - All our official coupon and discount codes in one place.