Find and compare 2 Star hotels in Southern Iceland
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Top Southern Iceland 2 Star hotels
CityHub Reykjavik
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
$73 nightly
The price is $89 total per night from May 11 to May 12
$89 total
May 11 - May 12
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! (444 reviews)
The pod was an excellent soze for a solo travellor abd the kitchen that was available made it easy to make your own food and save money i an expensive location. I was able to check in early which helped a lot since my flight landed very early.
Reviewed on May 1, 2026
Klausturhof Guesthouse
Klausturvegur 1-5 Kirkjubaejarklaustur
$135 nightly
The price is $157 total per night from May 7 to May 8
$157 total
May 7 - May 8
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, ...
The Barn - Hostel
Norðurfoss Vik I Myrdal
Fully refundableReserve now, pay when you stay
$91 nightly
The price is $108 total per night from May 9 to May 10
$108 total
May 9 - May 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! (532 reviews)
I loved my stay at the Barn! I am not usually a fan of shared dorms in hostels which is why I loved the private room option here with the shared bath. The facilities were clean and well maintained. There was a huge kitchen with lots of supplies for cooking which made is super convenient to save money ...
Reviewed on Apr 28, 2026
Hotel Boli Keflavik
11 Bolafótur Reykjanesbaer Reykjanesbær
$107 nightly
The price is $126 total per night from May 12 to May 13
$126 total
May 12 - May 13
Total with taxes and fees
This aparthotel doesn't skimp on freebies - guests receive free WiFi and free self parking. A virtual front desk are provided for your convenience.
8.8/10 Excellent! (9 reviews)
Great solution close to the airport. Check in was seamless and the room spacious with a comfy bed and big tv. Recommended
Reviewed on Apr 14, 2026
KEX Hotel and Hostel Reykjavik
28 Skúlagata Reykjavik Capital Region
Fully refundableReserve now, pay when you stay
$87 nightly
The price is $103 total per night from May 7 to May 8
$103 total
May 7 - May 8
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! (827 reviews)
Nice place, bus station is across town not too long walking. Stayed one night during a layover Will return
Reviewed on May 2, 2026
Adventure Hotel Hof
Hof 1 Fagurholsmyri South Iceland
$168 nightly
The price is $193 total per night from May 8 to May 9
$193 total
May 8 - May 9
Total with taxes and fees
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! (565 reviews)
Perfect 1 night stay for us when exploring the south east and loved the view from our room! Dinner was spot on, too.
Reviewed on May 4, 2026
Welcome Lambafell
Lambafell Rangárþing eystra South Iceland
$181 nightly
The price is $207 total per night from May 7 to May 8
$207 total
May 7 - May 8
Total with taxes and fees
This hotel features a seasonal outdoor pool and a hot tub. WiFi in public areas is free. A terrace, a garden, and express check-in are also on offer.
7.6/10 Good! (783 reviews)
Cozy warm log building lives up to its name. The breakfast was very good, with staff on site in morning. Quiet location close to, but a bit off the highway. Would definitely stay here again.
Reviewed on May 3, 2026
Apotek guesthouse
Hafnarbraut 29 Höfn
Fully refundableReserve now, pay when you stay
$110 nightly
The price is $128 total per night from May 10 to May 11
$128 total
May 10 - May 11
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! (214 reviews)
Very clean, lovely place
Reviewed on Apr 16, 2026
Aurora Igloo South
Stekkatún 1 Rangárþing ytra Iceland
$123 nightly
The price is $145 total per night from May 12 to May 13
$145 total
May 12 - May 13
Total with taxes and fees
Stay at this vacation home in Rangárþing ytra. Enjoy free WiFi and free parking. Popular attractions Caves of Hella and Hella Golf Course are located ...
9.6/10 Exceptional! (219 reviews)
Great check in and out process. The igloo was great. Having the private bathroom was necessary. Overall, great experience.
Reviewed on May 5, 2026
Blue Viking Studios
8 Grófin Reykjanesbær
$123 nightly
The price is $144 total per night from May 7 to May 8
$144 total
May 7 - May 8
Total with taxes and fees
Free WiFi in public areas is available at this aparthotel. Take advantage of the free self parking.
9/10 Wonderful! (2 reviews)
The room size was comfortable enough for our needs, and everything was very clean. The location near the airport was really convenient, especially since we only used it for an overnight stay. However, the photos were a bit misleading—it looked like the room had an extra bed that wasn’t actually there. ...
Reviewed on Apr 22, 2026
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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
Hótel Dyrhólaey
5 out of 5
Posted 1 hour ago
Travelocity Verified Review
"The hotel views are stunning, the variety of food in the breakfast buffet is amaizing and the staff is very nice, polite and helpful."
A verified traveler stayed at Hótel Dyrhólaey
