Find and compare 2 Star hotels in Southern Iceland
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Top Southern Iceland 2 Star hotels
KEX Hotel and Hostel Reykjavik
28 Skúlagata Reykjavik Capital Region
Fully refundableReserve now, pay when you stay
$70 nightly
The price is $84 total per night from Mar 29 to Mar 30
$84 total
Mar 29 - Mar 30
Total with taxes and fees
This hostel features a bar/lounge, free WiFi in public areas, and a library. Luggage storage, locker space, and laundry facilities are also on offer.
8.6/10 Excellent! (812 reviews)
Bathrooms were not clean. Didn't have paper towels.
Reviewed on Mar 12, 2026
Klausturhof Guesthouse
Klausturvegur 1-5 Kirkjubaejarklaustur
$177 nightly
The price is $205 total per night from Mar 21 to Mar 22
$205 total
Mar 21 - Mar 22
Total with taxes and fees
A restaurant and a bar/lounge are featured at this guesthouse. Guests will appreciate free perks like free self parking and WiFi in public areas. A coffee shop, ...
CityHub Reykjavik
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
$67 nightly
The price is $82 total per night from Mar 16 to Mar 17
$82 total
Mar 16 - Mar 17
Total with taxes and fees
Free WiFi in public areas, express check-in, and express check-out are available at this hotel. There's luggage storage and multilingual staff can provide around-the-clock ...
9.2/10 Wonderful! (404 reviews)
We had a great stay at CityHub Reykjavík the pods are modern, clean, and surprisingly cozy. The outdoor hot tub was definitely the highlight, relaxing in warm water while it’s cold outside is such an Icelandic experience. The breakfast concept was a bit unusual, but it wasn’t a big deal since the ...
Reviewed on Mar 13, 2026
The Barn - Hostel
Norðurfoss Vik I Myrdal
Fully refundableReserve now, pay when you stay
$89 nightly
The price is $105 total per night from Apr 9 to Apr 10
$105 total
Apr 9 - Apr 10
Total with taxes and fees
This hostel features free self parking and a bar/lounge. WiFi in public areas is free. Luggage storage and locker space are also provided.
9.4/10 Exceptional! (527 reviews)
I stayed in the standard area of The Barn as a solo traveler and felt very safe during my stay! I stayed for two nights. Both nights my dorm was full, but the second night I found myself as the only woman with less-than-courteous dorm mates. The Barn staff was helpful in finding me a new dorm, which ...
Reviewed on Mar 7, 2026
Apotek guesthouse
Hafnarbraut 29 Höfn
Fully refundableReserve now, pay when you stay
$80 nightly
The price is $96 total per night from Mar 25 to Mar 26
$96 total
Mar 25 - Mar 26
Total with taxes and fees
This guesthouse doesn't skimp on freebies - guests receive free WiFi and free self parking. A garden is also provided.
9.2/10 Wonderful! (210 reviews)
We loved our stay here! The room was clean and cozy, check in was easy and the staff were super friendly
Reviewed on Feb 27, 2026
Fisherman's Village
Hlidsvegur 1 Garðabær
$120 nightly
The price is $139 total per night from Mar 20 to Mar 21
$139 total
Mar 20 - Mar 21
Total with taxes and fees
Free self parking is available and the hotel's front desk is staffed around-the-clock. WiFi in public areas is free. A terrace and a garden are also ...
9.2/10 Wonderful! (1,001 reviews)
The room was very clean, quiet and comfortable. Check-in was easy and there’s lots of parking on the property. We had a wonderful stay here on our last night in Iceland!
Reviewed on Mar 11, 2026
Adventure Hotel Hof
Hof 1 Fagurholsmyri South Iceland
A restaurant, free self parking, and a garden are among this hotel's amenities. WiFi in public areas is free. Express check-in is also provided.
8.4/10 Very Good! (556 reviews)
Room was nice, staff was very nice. The location is very central. I’d recommend
Reviewed on Feb 15, 2026
Day Dream Vesturgata 17
17 Vesturgata Reykjavik
$147 nightly
The price is $170 total per night from Mar 17 to Mar 18
$170 total
Mar 17 - Mar 18
Total with taxes and fees
This aparthotel features self parking and free WiFi in public areas. Express check-in, express check-out, and luggage storage are also on offer.
8.6/10 Excellent! (132 reviews)
Great room, excellent value for money and the location couldn't be better! Highly recommend staying here!
Reviewed on Mar 12, 2026
Guesthouse Hvammur
Ránarslóð 2 Höfn
Fully refundableReserve now, pay when you stay
$377 nightly
The price is $425 total per night from Mar 16 to Mar 17
$425 total
Mar 16 - Mar 17
Total with taxes and fees
Free WiFi in public areas is available at this guesthouse. Take advantage of the free self parking.
8/10 Very Good! (221 reviews)
The bed was not really confortable and it wasn’t soundproofed at all. I could here the men next to me roll in is bed. It’s ok but not worth the price. Kitchen is good!
Reviewed on Oct 11, 2025
101 Guesthouse Hotel
Laugavegur 101 Reykjavik
Fully refundableReserve now, pay when you stay
$112 nightly
The price is $130 total per night from Mar 16 to Mar 17
$130 total
Mar 16 - Mar 17
Total with taxes and fees
Free WiFi in public areas, a communal living room, and express check-in are available at this guesthouse. Express check-out and luggage storage are also ...
7.6/10 Good! (515 reviews)
Room and facilities were generally clean and at the top end of what you would expect given the price. A bed, toilet, and shower in the centre of Reykjavik was what we were looking for and that is what we got.
Reviewed on Dec 24, 2025
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View all propertiesLowest 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.
2 Star Hotels Southern Iceland
Looking to break out of your routine for some much needed rest and relaxation? Or maybe you’ve already decided it’s time for a trip and are trying to find affordable hotels in Southern Iceland that won’t bust your travel budget?
Southern Iceland 2 star hotels will give you everything you need to enjoy the city like a local, saving a ton of money so you can hit all the hot spots in town.
Have a delicious breakfast at your hotel to fuel up for your day of sightseeing, then enjoy amenities like fresh towels and linens, as well as a nice hot shower to unwind after a busy day of experiencing everything the city has to offer.
As you explore a new locale, or one you love to visit over and over, you can rest easy knowing you’re staying in a great hotel that lets you discover Southern Iceland and welcomes you back to a clean, comfortable room at night.
Browse Travelocity’s wide selection of 2 star hotels in Southern Iceland and find one that’s perfectly priced and places you next to all the best activities and sights. The town is your oyster, and we can help you seek out its secrets while sticking to your budget.
Recent Southern Iceland hotel reviews by fellow wanderers
The Reykjavik EDITION
5 out of 5
Posted 14 hours ago
Travelocity Verified Review
"Room was spotless "
A verified traveler stayed at The Reykjavik EDITION
