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
$99 nightly
The price is $116 total per night from Nov 14 to Nov 15
$116 total
Nov 14 - Nov 15
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! (1,002 reviews)
"Loved my stay here"
Reviewed on Nov 12, 2026
CityHub Reykjavik
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
$71 nightly
The price is $86 total per night from Nov 18 to Nov 19
$86 total
Nov 18 - Nov 19
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! (734 reviews)
"No sitting space"
Reviewed on Nov 11, 2026
Klausturhof Guesthouse
Klausturvegur 1-5 Kirkjubaejarklaustur
$149 nightly
The price is $172 total per night from Nov 13 to Nov 14
$172 total
Nov 13 - Nov 14
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! (562 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
$142 nightly
The price is $164 total per night from Nov 14 to Nov 15
$164 total
Nov 14 - Nov 15
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
$76 nightly
The price is $91 total per night from Nov 16 to Nov 17
$91 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
$97 nightly
The price is $115 total per night from Nov 14 to Nov 15
$115 total
Nov 14 - Nov 15
Total with taxes and fees
This hotel features a virtual front desk. Take advantage of the free self parking.
Welcome Lambafell
Lambafell Rangárþing eystra South Iceland
$133 nightly
The price is $154 total per night from Nov 14 to Nov 15
$154 total
Nov 14 - Nov 15
Total with taxes and fees
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! (895 reviews)
"Loved our stay! Rooms were comfy and clean. The breakfast was yummy and while its a small array of items it was certainly enough to keep us going for an adventurous morning. Loved the coffee machine which can whip up anything you desire Including hot water for Ramen or cocoa (not provided but nice ..."
Reviewed on Nov 7, 2026
Hörgsland Guesthouse
Hörgsland 1 Kirkjubaejarklaustur
$117 nightly
The price is $137 total per night from Dec 3 to Dec 4
$137 total
Dec 3 - Dec 4
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 ...
7.8/10 Good! (266 reviews)
"We loved our stay here. I really appreciated how clean it was and that we had access to a small shared kitchenette. The added amenities added a level of comfort. It was cool that there were common spaces that included some games and books and things. The only thing that made our stay less than incredible ..."
Reviewed on Nov 9, 2026
Strand Hotel Apartments
Strandgata 30 Hafnarfjörður
$150 nightly
The price is $166 total per night from Nov 15 to Nov 16
$166 total
Nov 15 - Nov 16
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! (91 reviews)
"This place is pretty new, very clean, and in a convenient location. I didn't see anyone during our stay. Some people have made note of the climate control, but it has two windows and a door that open to the outside, so I didn't find it a problem to adjust if needed. My only criticism is the zero ..."
Reviewed on Nov 11, 2026
Aurora Igloo South
Stekkatún 1 Rangárþing ytra Iceland
$200 nightly
The price is $228 total per night from Nov 18 to Nov 19
$228 total
Nov 18 - Nov 19
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! (357 reviews)
"The igloo were very basic for the price but they are what it says they are and obviously you can't guarantee the weather or a night under the northern lights so just see it as an adventure"
Reviewed on Nov 12, 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 Glacier Lagoon
4 out of 5
Posted 3 hours ago
Travelocity Verified Review
"We had a great stay but on checking in we did not get the room we wanted and booked as a 1 bed. We needed to pay extra for a room with one bed."
A verified traveler stayed at Fosshotel Glacier Lagoon
