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
$106 nightly
The price is $126 total per night from Jan 4 to Jan 5
$126 total
Jan 4 - Jan 5
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.
8.4/10 Very Good! (777 reviews)
What an amazing hostel. Really liked this place. Felt very safe, spacious, clean, comfy beds. Great storage space in kitchen for food and to cook. Lots of seating on each floor. Fantastic reception and staff. Ideal location, stunning views and seen the northern lights across the road from the hostel. ...

Reviewed on Dec 20, 2025

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

Fisherman's Village

2.5 out of 5
Hlidsvegur 1 Garðabær
$123 nightly
The price is $143 total per night from Jan 6 to Jan 7
$143 total
Jan 6 - Jan 7
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)
Room was clean and was a quiet and secluded location. Refrigerator did not work but was cold enough to store items outside. Self-chexk in and out, only saw cleaning person. Close to Reykjavik

Reviewed on Dec 21, 2025

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
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! (366 reviews)
Clean, comfy bed and concierge welcoming

Reviewed on Dec 17, 2025

Opens in a new windowCityHub Reykjavik
Hotel Stafholt

Hotel Stafholt

2.5 out of 5
Stafholtsveggir, 2 Borgarnes Western Region
$137 nightly
The price is $160 total per night from Feb 1 to Feb 2
$160 total
Feb 1 - Feb 2
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! (63 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 refundableReserve now, pay when you stay
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! (243 reviews)
Stayed 1 night. It was better than expected. Especially the cleanliness. Internal decoration is unique and ambiance is relaxing.

Reviewed on Nov 16, 2025

Opens in a new windowHostel B47
Guesthouse Aurora

Guesthouse Aurora

2 out of 5
Freyjugata 24 Reykjavik
$86 nightly
The price is $103 total per night from Jan 5 to Jan 6
$103 total
Jan 5 - Jan 6
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! (485 reviews)
Rooms are small, shared bathroom, breakfast has many options to choose. Great area, easy to walk everywhere, recommend staying.

Reviewed on Oct 30, 2025

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
$57 nightly
The price is $69 total per night from Jan 11 to Jan 12
$69 total
Jan 11 - Jan 12
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! (339 reviews)
Andrea’s Guesthouse was exactly what we had hoped it would be. Reasonable, right in the middle of some amazing shops, Loki’s, some pastry places. I would happily recommend Andrea’s to friends and family, and yes we would stay here again!

Reviewed on Nov 29, 2025

Opens in a new windowGuesthouse Andrea
Stöð Guesthouse & Aparments

Stöð Guesthouse & Aparments

2 out of 5
Sólvellir 13 Grundarfjörður
$110 nightly
The price is $130 total per night from Jan 3 to Jan 4
$130 total
Jan 3 - Jan 4
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