Find and compare 2 Star hotels in Southern Iceland
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Top Southern Iceland 2 Star hotels

CityHub Reykjavik
always a great stay at city hub!
Reviewed on May 10, 2026

Hotel Boli Keflavik
Great option for the price. Due to the layout of the building, the wifi did not reach my room so I was unable to do any work all evening. I did reach out to staff and they were quick to respond stating they would look into it, but it was never rectified.
Reviewed on May 10, 2026

Klausturhof Guesthouse

The Barn - Hostel
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

KEX Hotel and Hostel Reykjavik
I really enjoyed my time at this Hostel! I recommend this location, and establishment for any solo travellers on a budget looking for a perfect place to stay — close to city centre, walks along the coast, and lots of historical sights around! The staff were very nice and attentive.
Reviewed on May 10, 2026

Student Hostel

Adventure Hotel Hof
Great hotel stay along the ring road! Staff was nice, helped me fill my camelbacks, breakfast was good and filling, and the room was cozy. No complaints!
Reviewed on May 7, 2026

Welcome Lambafell
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

Aurora Igloo South
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
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
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






