Find and compare 2 Star hotels in Western Iceland

Name: The Old Post Office
Price range: $170 total

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Top Western Iceland 2 Star hotels

KEX Hotel and Hostel Reykjavik

28 Skúlagata Reykjavik Capital Region

Fully refundableReserve now, pay when you stay

$100 nightly

$118 total

Oct 27 - Oct 28

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.

CityHub Reykjavik

46 Hverfisgata Reykjavik Reykjavíkurborg

Fully refundableReserve now, pay when you stay

$80 nightly

$96 total

Nov 3 - Nov 4

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 ...

Strand Hotel Apartments

Strandgata 30 Hafnarfjörður

$175 nightly

$195 total

Oct 27 - Oct 28

Total with taxes and fees

Free WiFi in public areas is available at this hotel. Take advantage of the free self parking.

9.4/10 Exceptional! (86 reviews)

"Lovely, comfy bed, kitchen with cutlery and pots, modern styling with appliances. Would definitely stay again."

Reviewed on Oct 22, 2026

Stöð Guesthouse & Aparments

Sólvellir 13 Grundarfjörður

$115 nightly

$136 total

Nov 22 - Nov 23

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 ...

Guesthouse Aurora

Freyjugata 24 Reykjavik

$73 nightly

$88 total

Oct 27 - Oct 28

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 ...

Sjávarborg

4 Hafnargata Stykkisholmur

$76 nightly

$91 total

Nov 1 - Nov 2

Total with taxes and fees

A bar/lounge and a coffee shop are featured at this guesthouse, along with free self parking. WiFi in public areas is free. A garden and laundry facilities are ...

101 Guesthouse Hotel

Laugavegur 101 Reykjavik

Fully refundableReserve now, pay when you stay

$94 nightly

$111 total

Nov 1 - Nov 2

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! (575 reviews)

"The room was obviously old and well used but clean on arrival. There were no staff apparent, but I later found that staff in the Chinese restaurant on the ground floor were helpful. The location was excellent, ideally placed for you shops, restaurants and transport links"

Reviewed on Oct 12, 2026

Guesthouse Pávi

Brautarholti 4 Reykjavik

$63 nightly

$77 total

Nov 16 - Nov 17

Total with taxes and fees

Free WiFi in public areas and express check-out are available at this guesthouse.

6.2/10 (383 reviews)

"I believe the cost in the city justified a private bedroom with a personal bathroom, which proved much less expensive than alternatives offering free parking outside. I recommend this location."

Reviewed on Oct 19, 2026

Hostel B47

Baronsstigur 47 Reykjavik

Fully refundableReserve now, pay when you stay

$84 nightly

$100 total

Nov 18 - Nov 19

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! (318 reviews)

"It was good experience"

Reviewed on Oct 19, 2026

The Old Post Office

Grundargata 50 Grundarfjörður

$148 nightly

$170 total

Oct 27 - Oct 28

Total with taxes and fees

This guesthouse doesn't skimp on freebies - guests receive free WiFi and free self parking. A terrace, a garden, and concierge services are also on offer.

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Lowest 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 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

Miðgarður by Center Hotels

5 out of 5

Posted 6 hours ago

Travelocity Verified Review

"Everything was fabulous"

A verified traveler stayed at Miðgarður by Center Hotels

Fosshotel Reykjavik

4 out of 5

Posted 11 hours ago

Travelocity Verified Review

"The Flybus from the airport took us to the bus station and then from there we waited for our color-coded bus to take us to the hotel. We waited to depart the airport quite a long time because the bus waited until it was completely full before departing. The journey took 50 minutes to the bus station, a wait of 15 minutes for our second bus and then another 10 minutes to the hotel. The wait for the second bus was a bit confusing because there was no one there to inform us as to when the second bus would arrive. The hotel receptionist wasn't very friendly. But our room on the 14th floor had a nice view of the harbor and was very clean. The breakfast buffet was very good with a wide variety of foods available. It opened at 6:30am and was immediately crowded with tour groups. The hotel staff were not too friendly and didn't look happy that they were there, but I think they were not purposely being rude. We rode a taxi back to the airport to avoid the bus situation and it cost $179 for the 50 minute ride. The location of the hotel is very nice within walking distance to the city's tourist sites. Overall a nice stay but I would probably want to try another hotel if we ever find ourselves in Reykjavik again."

A verified traveler stayed at Fosshotel Reykjavik

Center Hotels Plaza

5 out of 5

Posted 12 hours ago

Travelocity Verified Review

"Lovely hotel. We arrived on a Saturday and were pleasantly surprised that our room was ready a couple of hours before check-in, which was greatly appreciated after traveling. We stayed in Room 808 (an executive room,) which was clean, comfortable, and appeared to have been refreshed recently. One unique feature was the shared balcony on the 8th floor, where we were lucky enough to see the Northern Lights one evening. Access is through a door outside the guest rooms rather than directly from the room itself, which we actually preferred. Some rooms do have direct balcony access, so if you use the shared space, just be mindful of noise and avoid standing directly in front of other guests' doors. The breakfast was quite good. There was a nice selection of coffee and tea, eggs, bacon, sausage, skyr, fresh fruit, assorted breads, and pastries, which gave us plenty of options before heading out for the day. The only issue we encountered was that a couple of days into our stay I noticed I had been charged the full cost of the room on my credit card even though I had prepaid through Hotels.com. When I mentioned it at the front desk, the staff quickly looked into it and processed a refund right away. Overall, we had a very pleasant stay. The room was clean, the staff was helpful, the breakfast was good, and the early check-in was a wonderful surprise. I'd happily stay here again and would recommend it to others visiting Iceland."

A verified traveler stayed at Center Hotels Plaza

Hotel Reykjavík Grand

5 out of 5

Posted 1 day ago

Travelocity Verified Review

"The staff was very accommodating when I wanted to check in early. My room was ready very quickly and I got upgraded to a tower view room. The building is beautiful, staff is helpful, and the hotel is very conveniently located in the heart of town. My only thing I would warn others about is that there’s currently construction being done, so you’ll hear noises from the construction crew, but it didn’t bother me as I was gone most of the day anyways. Highly recommend to anyone looking for a hotel in Reykjavík!"

A verified traveler stayed at Hotel Reykjavík Grand