Top 10 Cheap Hotels & Accommodation in Southern Iceland from AU$204 | Expedia

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Our top choices for Southern Iceland cheap hotels

A restaurant with multiple dining tables and chairs, a bar area, and a loft space with a view.

A building labeled 'Fox Hostel' with a covered entrance and snow on the roof.

A bunk bed with a wooden slat wall, a small shelf, and a plaid curtain.

A hand holding a clear ice crystal with a black volcanic landscape in the background.

1. The Fox Hostel

Hrífunesvegur

United States

Joe

AU$108

includes taxes & fees

1 Nov - 2 Nov

A modern interior with wooden flooring, black brick walls, and large windows offering a city view. Tables and chairs are arranged for dining.

A modern bar area with a long counter, four black chairs, and a large mirror above the counter.

A modern interior with a piano, seating area, and a staircase.

A bar area with a brick wall, bar stools, and a counter with bottles.

2. The Barn - Hostel

Vik I Myrdal

Canada

Ankit

AU$150

includes taxes & fees

1 Nov - 2 Nov

A modern building with a grey facade, a wooden accent wall, and a large window.

A patio area with round tables and chairs, potted plants, and a sliding glass door leading to an indoor space.

A reception area with a fireplace, a baby changing station, and a map of the hostel.

A conference room with large windows, a whiteboard, and a poster of animals.

3. Höfn HI Hostel

Höfn

United States

Anna

AU$147

includes taxes & fees

1 Nov - 2 Nov

A stainless steel kitchen with a central island, overhead ventilation, and a row of pots below.

A parking area with cars, a building labeled "Entrance Restaurant & Reception," and a waterfall in the background.

A modern building with a clear sky and mountains in the background.

A staircase with dark carpeted steps leading to a landing, adjacent to a window with a view of a hilly landscape.

4. Skogar Hostel

Rangárþing eystra

United States

Heather

AU$168

includes taxes & fees

1 Nov - 2 Nov

A building with multiple windows and a flat roof, under a night sky with green aurora lights.

A room with a beige sofa, a glass coffee table, a black chair, and a small orange table.

A room with a door, a window, a black chair, an orange chair, a beige sofa, and a vase with dried flowers.

A hallway with a mirror, a door with emergency exit signs, and a fire extinguisher.

5. Hostel Fjordur

Hafnarfjörður

United States

Mario

AU$145

includes taxes & fees

31 Oct - 1 Nov

A buffet with various food items and beverages.

A modern building with the sign "START" on the facade, featuring a flat roof and large windows.

A room with a wooden table, two green armchairs, a painting of a seascape, and a window with a view of a building.

A reception area with a check-in counter, a wall clock, and a flag.

6. Start Hostel

Reykjanesbær

United States

Wonsuk

AU$205

includes taxes & fees

1 Nov - 2 Nov

A modern living room with a dark sofa, a round coffee table, and several potted plants.

A dining area with wooden tables and chairs, pendant lighting, and artwork on the walls.

A multi-story building with a yellow facade, white trim, and a central entrance.

A modern office space with a sofa, chairs, a table, and a large window.

7. Old Town Reykjavik

Downtown Reykjavik

Canada

Tatiana

AU$144

includes taxes & fees

1 Nov - 2 Nov

A two-story house with a snow-covered roof and a white picket fence.

A kitchen with a microwave, stove, and checkered backsplash.

A staircase with white balusters and a white handrail, leading to a door with a brass doorknob.

A wooden deck with a metal railing, overlooking a street with buildings and a mountain in the background.

8. Refurinn Reykjavik Guesthouse - Hostel

Vesturbær

United States

Justina

AU$231

includes taxes & fees

14 Oct - 15 Oct

View all properties

Top Southern Iceland Hotel Reviews

Alda Hotel Reykjavik

Alda Hotel Reykjavik

8/10 Good

"Excellent hotel in a very convenient location. The room was fairly spacious and immaculate. Also high-end bathroom products (including actual conditioner, which many hotels seem to have replaced with an ineffective shampoo + conditioner combo)"

Konvin Hotel by Reykjavik Keflavik Airport

Konvin Hotel by Reykjavik Keflavik Airport

10/10 Excellent

"Great"

Fosshotel Glacier Lagoon

Fosshotel Glacier Lagoon

10/10 Excellent

"Great property. It was raining all day, so was nice to be able to go down to the spa."

Alva Hotel Brautarholt

Alva Hotel Brautarholt

10/10 Excellent

"Clean and comfortable room"