Find and compare 2 Star hotels in Western Iceland

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Top Western Iceland 2 Star hotels

KEX Hostel and Hotel Reykjavik

KEX Hostel and Hotel Reykjavik

2 out of 5
28 Skúlagata Reykjavik Capital Region
Fully refundableReserve now, pay when you stay
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.
8.4/10 Very Good! (797 reviews)
Staff was lovely and rooms were clean.

Reviewed on Feb 11, 2026

Opens in a new windowKEX Hostel and Hotel Reykjavik
Fisherman's Village

Fisherman's Village

2.5 out of 5
Hlidsvegur 1 Garðabær
$124 nightly
The price is $145 total per night from Feb 22 to Feb 23
$145 total
Feb 22 - Feb 23
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! (1,000 reviews)
Yes, the room was spotless. I hope to one day go back again and I would stay in the exact same place. It was out of the way and saw the northern lights near enough every night and had snow. I would highly recommend this place and it’s worth the money.

Reviewed on Feb 8, 2026

Opens in a new windowFisherman's Village
CityHub Reykjavik

CityHub Reykjavik

2 out of 5
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
$87 nightly
The price is $104 total per night from Mar 2 to Mar 3
$104 total
Mar 2 - Mar 3
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 ...
9/10 Wonderful! (394 reviews)
As a solo traveler, I highly recommend this hostel! The City Hosts were so kind, cheerful, & ready to help! You could tell they enjoy their job. :) The pods were wonderful! It felt like a good, private escape when I needed to rest after adventuring. The lights and Bluetooth speakers were a fun touch!! ...

Reviewed on Feb 16, 2026

Opens in a new windowCityHub Reykjavik
Hotel Stafholt

Hotel Stafholt

2.5 out of 5
Stafholtsveggir, 2 Borgarnes Western Region
Fully refundableReserve now, pay when you stay
$126 nightly
The price is $146 total per night from Mar 8 to Mar 9
$146 total
Mar 8 - Mar 9
Total with taxes and fees
A restaurant and a bar/lounge are featured at this hotel. There's no skimping on freebies - guests receive free buffet breakfast, free WiFi, and free self parking. ...
9.6/10 Exceptional! (66 reviews)
Stayed in the Aurora cabin and it was incredible. Private and cozy. Gorgeous Auroras and falling stars. Bathroom was beautiful. Floors heated throughout. The main Inn was beautiful too. Nice ambiance. Nice bar area with nice sitting area. We did not eat at the resturant, but wished we would of because ...

Reviewed on Dec 14, 2025

Opens in a new windowHotel Stafholt
Hostel B47

Hostel B47

2 out of 5
Baronsstigur 47 Reykjavik
Fully refundable
$105 nightly
The price is $124 total per night from Mar 15 to Mar 16
$124 total
Mar 15 - Mar 16
Total with taxes and fees
This hostel doesn't skimp on freebies - guests receive free WiFi and free self parking. A garden, a communal living room, and express check-out are also on ...
8.4/10 Very Good! (248 reviews)
Clean and comfortable

Reviewed on Jan 6, 2026

Opens in a new windowHostel B47
Guesthouse Aurora

Guesthouse Aurora

2 out of 5
Freyjugata 24 Reykjavik
$99 nightly
The price is $117 total per night from Feb 24 to Feb 25
$117 total
Feb 24 - Feb 25
Total with taxes and fees
This guesthouse doesn't skimp on freebies - guests receive free WiFi and free self parking. Express check-in, express check-out, and dry cleaning are also on ...
8.2/10 Very Good! (495 reviews)
Spotlessly clean , warm and cosy, simple but decent qnd varied breakfast, amazing location, staff friendly and helpful. Could not ask for more.

Reviewed on Jan 4, 2026

Opens in a new windowGuesthouse Aurora
101 Guesthouse Hotel

101 Guesthouse Hotel

2 out of 5
Laugavegur 101 Reykjavik
Fully refundableReserve now, pay when you stay
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 ...
7.4/10 Good! (511 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

Opens in a new window101 Guesthouse Hotel
Guesthouse Pávi

Guesthouse Pávi

2.5 out of 5
Brautarholti 4 Reykjavik
$81 nightly
The price is $97 total per night from Feb 19 to Feb 20
$97 total
Feb 19 - Feb 20
Total with taxes and fees
Free WiFi in public areas and express check-out are available at this guesthouse.
6/10 (359 reviews)
Twas good

Reviewed on Jul 9, 2025

Opens in a new windowGuesthouse Pávi
Guesthouse Andrea

Guesthouse Andrea

2.5 out of 5
Njardargata 43 Reykjavik
This guesthouse doesn't skimp on freebies - guests receive free WiFi and free self parking. A garden, luggage storage, and laundry facilities are also on ...
8.2/10 Very Good! (346 reviews)
good location! really good breakfast. easy self-service

Reviewed on Feb 4, 2026

Opens in a new windowGuesthouse Andrea
Stöð Guesthouse & Aparments

Stöð Guesthouse & Aparments

2 out of 5
Sólvellir 13 Grundarfjörður
$149 nightly
The price is $172 total per night from Feb 19 to Feb 20
$172 total
Feb 19 - Feb 20
Total with taxes and fees
This guesthouse doesn't skimp on freebies - guests receive free WiFi and free self parking. A garden, a picnic area, and a virtual front desk are also on ...
9/10 Wonderful! (30 reviews)
Great view! Clean and basic, but fabulous restaurant nextdoor

Reviewed on Oct 28, 2025

Opens in a new windowStöð Guesthouse & Aparments
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2 Star Hotels Western 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 Western Iceland that won’t bust your travel budget?

Western 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 Western Iceland and welcomes you back to a clean, comfortable room at night.

Browse Travelocity’s wide selection of 2 star hotels in Western 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 Western Iceland hotel reviews by fellow wanderers