Find and compare 2 Star hotels in Southern Iceland
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Top Southern Iceland 2 Star hotels
KEX Hotel and Hostel Reykjavik
28 Skúlagata Reykjavik Capital Region
Fully refundableReserve now, pay when you stay
$93 nightly
The price is $110 total per night from Oct 27 to Oct 28
$110 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
$83 nightly
The price is $99 total per night from Nov 4 to Nov 5
$99 total
Nov 4 - Nov 5
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! (717 reviews)
"Staying here was a wonderful experience! The front desk staff was extremely accommodating and the desk was staffed 24/7, which was so convenient. It was completely silent at night. One of our best nights sleep of our trip. Pods were well laid out so there was plenty of room for 2 adults and all of ..."
Reviewed on Oct 22, 2026
Klausturhof Guesthouse
Klausturvegur 1-5 Kirkjubaejarklaustur
$146 nightly
The price is $169 total per night from Nov 4 to Nov 5
$169 total
Nov 4 - Nov 5
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, ...
8/10 Very Good! (560 reviews)
"Comfortable beds and sheets, warm shower. Breakfast was not our idea of ideal. Not into cold eggs and cucumbers but aside from that we had no issues"
Reviewed on Oct 21, 2026
Adventure Hotel Hof
Hof 1 Fagurholsmyri South Iceland
$156 nightly
The price is $180 total per night from Nov 19 to Nov 20
$180 total
Nov 19 - Nov 20
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.
The Barn - Hostel
Norðurfoss Vik I Myrdal
Fully refundableReserve now, pay when you stay
$77 nightly
The price is $92 total per night from Nov 16 to Nov 17
$92 total
Nov 16 - Nov 17
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.
Nupan Deluxe
10 Aðalgata Keflavík Reykjanesbær
Fully refundableReserve now, pay when you stay
$123 nightly
The price is $145 total per night from Oct 25 to Oct 26
$145 total
Oct 25 - Oct 26
Total with taxes and fees
This hotel features a virtual front desk. Take advantage of the free self parking.
9.2/10 Wonderful! (69 reviews)
"Perfectly located in downtown Keflavik and close to the airport. Reasonably priced, quiet and extremely clean."
Reviewed on Oct 22, 2026
Welcome Lambafell
Lambafell Rangárþing eystra South Iceland
This hotel features a seasonal outdoor pool and a hot tub. WiFi in public areas is free. A terrace and a garden are also provided.
7.6/10 Good! (893 reviews)
"It was not as described. We were given an upstairss room, stairs only, no elevator. I’m handicapped, I am unable to climb stairs. I called the hotel contact number, as there is no one on site; it was self check-in. The female representative of the hotel told me she would cancel our reservation with ..."
Reviewed on Oct 23, 2026
Hörgsland Guesthouse
Hörgsland 1 Kirkjubaejarklaustur
$109 nightly
The price is $129 total per night from Nov 6 to Nov 7
$129 total
Nov 6 - Nov 7
Total with taxes and fees
This guesthouse features free self parking and free WiFi in public areas. Enjoy the free continental breakfast each morning. A terrace and a garden are also ...
Strand Hotel Apartments
Strandgata 30 Hafnarfjörður
$175 nightly
The price is $195 total per night from Oct 25 to Oct 26
$195 total
Oct 25 - Oct 26
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! (85 reviews)
"Lovely, comfy bed, kitchen with cutlery and pots, modern styling with appliances. Would definitely stay again."
Reviewed on Oct 22, 2026
Aurora Igloo South
Stekkatún 1 Rangárþing ytra Iceland
$226 nightly
The price is $258 total per night from Nov 22 to Nov 23
$258 total
Nov 22 - Nov 23
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 ...
9.4/10 Exceptional! (341 reviews)
"Staying at Aurora Igloo was an incredible experience. Property was just as described and luckily was able to see the northern lights at night which was amazing. Only issue was that the heater had issues and stopped working. There was a back up heater but it took a while to get warmed up."
Reviewed on Oct 21, 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
Fosshotel Reykjavik
4 out of 5
Posted 5 hours ago
Travelocity Verified Review
"This was a great stay and a really nice hotel. The rooms are spacious, comfortable and clean*. Staff was friendly and helpful. We did not dine at the hotel however the restaurant seemed really nice. My one complaint has to do with the parking situation. First there is parking garage adjacent to the hotel, but it's confusing and expensive. The staff recommended the municipal lot around the corner, which was fine as long as it wasn't raining/snowing, *The room was clean, however the floor is of natural wood and the planks by the desk were stained/dirty and water-damaged probably from hundreds of wet shoes from all the guests - a minor defect but worth noting in a hotel of this caliber. Maybe a small rug or pad would help."
A verified traveler stayed at Fosshotel Reykjavik
