Find and compare 2 Star hotels in Southern Iceland

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Top Southern Iceland 2 Star hotels

CityHub Reykjavik

CityHub Reykjavik

2 out of 5
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
$69 nightly
The price is $84 total per night from May 12 to May 13
$84 total
May 12 - May 13
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! (449 reviews)
always a great stay at city hub!

Reviewed on May 10, 2026

Opens in a new windowCityHub Reykjavik
Hotel Boli Keflavik

Hotel Boli Keflavik

2 out of 5
11 Bolafótur Reykjanesbaer Reykjanesbær
$110 nightly
The price is $129 total per night from May 12 to May 13
$129 total
May 12 - May 13
Total with taxes and fees
This aparthotel doesn't skimp on freebies - guests receive free WiFi and free self parking. A virtual front desk are provided for your convenience.
8.8/10 Excellent! (11 reviews)
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

Opens in a new windowHotel Boli Keflavik
Klausturhof Guesthouse

Klausturhof Guesthouse

2.5 out of 5
Klausturvegur 1-5 Kirkjubaejarklaustur
$154 nightly
The price is $178 total per night from May 12 to May 13
$178 total
May 12 - May 13
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, ...
Opens in a new windowKlausturhof Guesthouse
The Barn - Hostel

The Barn - Hostel

2 out of 5
Norðurfoss Vik I Myrdal
Fully refundableReserve now, pay when you stay
$92 nightly
The price is $108 total per night from May 13 to May 14
$108 total
May 13 - May 14
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.
9.4/10 Exceptional! (532 reviews)
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

Opens in a new windowThe Barn - Hostel
KEX Hotel and Hostel Reykjavik

KEX Hotel and Hostel Reykjavik

2 out of 5
28 Skúlagata Reykjavik Capital Region
Fully refundableReserve now, pay when you stay
$77 nightly
The price is $92 total per night from May 13 to May 14
$92 total
May 13 - May 14
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.
8.6/10 Excellent! (829 reviews)
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

Opens in a new windowKEX Hotel and Hostel Reykjavik
Student Hostel

Student Hostel

2 out of 5
Hringbraut 29 Reykjavik
$117 nightly
The price is $138 total per night from Jun 1 to Jun 2
$138 total
Jun 1 - Jun 2
Total with taxes and fees
A restaurant and a bar/lounge are featured at this hostel. WiFi in public areas is free. Self parking, a coffee shop, and a garden are also offered.
Opens in a new windowStudent Hostel
Adventure Hotel Hof

Adventure Hotel Hof

2.5 out of 5
Hof 1 Fagurholsmyri South Iceland
$169 nightly
The price is $194 total per night from May 19 to May 20
$194 total
May 19 - May 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.
8.4/10 Very Good! (567 reviews)
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

Opens in a new windowAdventure Hotel Hof
Welcome Lambafell

Welcome Lambafell

2.5 out of 5
Lambafell Rangárþing eystra South Iceland
$182 nightly
The price is $209 total per night from May 13 to May 14
$209 total
May 13 - May 14
Total with taxes and fees
This hotel features a seasonal outdoor pool and a hot tub. WiFi in public areas is free. A terrace, a garden, and express check-in are also on offer.
7.6/10 Good! (783 reviews)
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

Opens in a new windowWelcome Lambafell
Aurora Igloo South

Aurora Igloo South

2.5 out of 5
Stekkatún 1 Rangárþing ytra Iceland
$132 nightly
The price is $154 total per night from May 12 to May 13
$154 total
May 12 - May 13
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 ...
9.6/10 Exceptional! (219 reviews)
Great check in and out process. The igloo was great. Having the private bathroom was necessary. Overall, great experience.

Reviewed on May 5, 2026

Opens in a new windowAurora Igloo South
Blue Viking Studios

Blue Viking Studios

2 out of 5
8 Grófin Reykjanesbær
$122 nightly
The price is $143 total per night from May 18 to May 19
$143 total
May 18 - May 19
Total with taxes and fees
Free WiFi in public areas is available at this aparthotel. Take advantage of the free self parking.
9/10 Wonderful! (2 reviews)
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

Opens in a new windowBlue Viking Studios
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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 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