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The most popular hotels in South Island

Check out the accommodations other travelers loved.

Southern Iceland Hotels for Your Next Holiday

Why Tourists Visit Southern Iceland

  • • Visit Jökulsárlón Glacier Lagoon to see floating icebergs.
  • • Hike to see the Sólheimajökull and Skaftafellsjökull glaciers.
  • • Walk behind the cascading waters at Seljalandsfoss waterfall.
  • • Experience the dramatic basalt cliffs and black sands of Reynisfjara Beach.
  • • Tour the Golden Circle to visit Gullfoss, Þingvellir, and Geysir.

Southern Iceland boasts over 150 accommodations ranging from budget farm stays to luxury lodges and boutique hotels, where cities like Vik and Hvolsvöllur have a higher concentration of options. The average cost for a 3-star property ranges from $150–$220 per night, while 5-star hotels like 'Blue View Horizon Suites' exceed $400. Recently opened hotels such as 'Hekla Stays' in Hella offer sustainable designs and panoramic views of mountains and volcanoes.

Southern Iceland is renowned for its stunning natural attractions, including the iconic Seljalandsfoss and Skógafoss waterfalls, Reynisfjara's black sand beaches, and the magnificent Jökulsárlón Glacier Lagoon.

Tourists flock to this region to experience its glaciers, basalt columns, and opportunities to see the Northern Lights during winter.

The region also offers easy access to the Golden Circle, including Þingvellir National Park, Geysir, and Gullfoss waterfall.

Southern Iceland Tips You Must Know

• Book hotels 3–6 months in advance, especially for summer (June–August) and during Northern Lights season (September–April).

• Consider renting a car since public transport to rural attractions is extremely limited.

• Bring waterproof clothing as the weather can be unpredictable, even in summer.

• Look for hotels offering Northern Lights wake-up calls during winter months.

• Stick to well-marked roads, especially in winter, and check daily road conditions at road.is.

Reykjavík

Reykjavík, Iceland's capital, is a vibrant mix of colorful rooftops and modern art. Its Hallgrímskirkja church is an unmissable architectural landmark, while the harbor hums with whale-watching tours. Local pools like Laugardalslaug are perfect for geothermal relaxation.

Find amazing hotels in Reykjavík and make the most of Iceland’s capital.

Vik

Vik, nestled against black sand beaches, is home to the Reynisdrangar sea stacks and puffin colonies. The nearby Katla Geopark offers breathtaking lava fields. Its charming wooden church, poised on a hill, provides postcard-worthy views.

Explore hotels in Vik for quick access to black sands and puffins.

Hella

Hella is a base for exploring the Hekla volcano, often called 'Iceland’s gateway to hell.' The Rangá River surrounding it is renowned for salmon fishing. Hella also provides excellent Northern Lights viewing without the city light pollution.

Check out hotels in Hella for a cozy stay near Hekla volcano.

Kirkjubæjarklaustur

Kirkjubæjarklaustur boasts a mystical charm with its Systrastapi rock linked to folklore. Fjaðrárgljúfur canyon, just outside town, is a spectacular natural wonder. Its historical ties include a medieval monastery whose stories still echo through its landscapes.

Choose hotels in Kirkjubæjarklaustur for a tranquil escape into Icelandic legend.

Höfn

Höfn, dubbed the 'lobster capital of Iceland,' is a culinary hotspot. The Vatnajökull Glacier, Europe’s largest, looms nearby with unforgettable glacier tours. Höfn’s art and culture scenes are showcased at the annual Þjóðhátíð festival every summer.

Stay at hotels in Höfn to savor lobster and explore glaciers.

Central Gems in Southern Iceland

Find your home base among Central hotels in southern Iceland’s vibrant hubs.

Hotel Name
Description
#
Price per night

Hotel Vik I Myrdal

Vik

  • Reynisfjara Beach (3 km)
  • Reynisdrangar (3 km)
  • Dyrhólaey (14 km)

This hotel offers panoramic views of Reynisdrangar sea stacks from nearly every room, combining modern comfort with a perfect coastal vibe.

  • Modern decor

  • Coastal proximity

  • Exceptional restaurant

$220-$300/night

Hotel Kria

Vik

  • Reynisfjara Beach (5 km)
  • Katla Ice Cave (10 km)
  • Dyrhólaey (15 km)

Boasting sleek Scandinavian design, this hotel has its own backyard Northern Lights viewing area for guests in winter.

  • Stylish design

  • Views of Aurora Borealis

  • Excellent breakfast buffet

$200-$280/night

Blue Hotel Fagrilundur - On The Golden Circle

Laugarvatn

  • Geysir (25 km)
  • Gullfoss waterfall (35 km)
  • Þingvellir National Park (25 km)

This compact and charming hotel is perfectly situated along the Golden Circle, making it ideal for day trips to some of Iceland’s most famous landmarks.

  • Prime location

  • Cozy atmosphere

  • Close to hot springs

$160-$220/night

Luxury Retreats for the Discerning Traveler

Discover top-notch Luxury hotels in southern Iceland for a lavish stay.

Hotel Name
Description
#
Price per night

Stracta Hotel

Hella

  • Hekla Volcano (30 km)
  • Seljalandsfoss (55 km)
  • Landmannalaugar (90 km)

This eco-friendly hotel blends luxury with sustainability, featuring rooftop hot tubs that overlook rugged Icelandic landscapes.

  • Eco-conscious features

  • Rooftop hot tubs

  • Onsite restaurant

$250-$400/night

Hotel South Coast

Selfoss

  • Kerid Crater (15 km)
  • Þingvellir National Park (40 km)
  • Seljalandsfoss (65 km)

Located in Selfoss, this hotel features a rooftop spa and chic modern interiors inspired by the surrounding natural beauty.

  • Modern luxury

  • Rooftop spa

  • Central location

$270-$350/night

Hotel Geysir

Geysir

  • Geysir (0.1 km)
  • Gullfoss (10 km)
  • Þingvellir National Park (50 km)

Situated right next to the famous geyser that gave the world its name, this hotel marries Icelandic heritage with 5-star comforts.

  • Unbeatable location

  • High-end design

  • Proximity to geothermal attractions

$300-$450/night

Charming Boutique Hotels with a Personal Touch

Stay at Boutique hotels in Southern Iceland for a unique and intimate experience.

Hotel Name
Description
#
Price per night

Guesthouse Vatnsholt

Selfoss

  • Kerid Crater (15 km)
  • Reykjadalur Hot Springs (25 km)
  • Thingvellir National Park (40 km)

This converted farmhouse offers quirky decor and a chance to spot the resident Icelandic horses grazing nearby.

  • Rustic charm

  • Icelandic horse encounters

  • Family-friendly atmosphere

$120-$180/night

Hotel Kanslarinn Hella

Hella

  • Hekla Volcano (25 km)
  • Seljalandsfoss (40 km)
  • Landmannalaugar (75 km)

This boutique hotel is housed in the former town council building, offering a unique blend of history and modern hospitality.

  • Historic building

  • Cozy interiors

  • Friendly service

$130-$190/night

Heradsskolinn Historic Guesthouse

Laugarvatn

  • Geysir (20 km)
  • Gullfoss (30 km)
  • Thingvellir National Park (25 km)

Nestled by Lake Laugarvatn, this former schoolhouse offers vintage decor and evening storytelling sessions to guests.

  • Historic charm

  • Storytelling events

  • Lakefront views

$100-$160/night

Top Picks for Family-Friendly Fun

Check out our favorite Family Friendly hotels in Southern Iceland for fun family stays.

Hotel Name
Description
#
Price per night

Hotel Dyrholaey

Vik

  • Dyrholaey Peninsula (5 km)
  • Reynisfjara (7 km)
  • Katla Volcano (20 km)

This family-friendly spot offers spacious rooms and unbeatable views of the surrounding glaciers and volcanoes.

  • Spacious rooms

  • Great views

  • Excellent for groups

$150-$250/night

Hotel Katla By Keahotels

Vik

  • Reynisfjara Beach (8 km)
  • Dyrholaey (15 km)
  • Mýrdalsjökull Glacier (20 km)

Nestled near Vik, this hotel features outdoor hot tubs that offer magical sunset views after a family adventure.

  • Outdoor hot tubs

  • Friendly staff

  • Good dining options

$220-$280/night

Midgard Base Camp

Hvolsvöllur

  • Seljalandsfoss (20 km)
  • Skogafoss (45 km)
  • Thorsmork Valley (60 km)

A perfect hub for active families, this hotel organizes glacier hikes and jeep tours tailored for all ages.

  • Adventure activities

  • Family-friendly rooms

  • Great communal spaces

$170-$230/night

Serene Spa Escapes in Southern Iceland

Relax at the best Spa hotels in Southern Iceland for a rejuvenating stay.

Hotel Name
Description
#
Price per night

Hotel Selfoss

Selfoss

  • Kerid Crater (15 km)
  • Thingvellir National Park (40 km)
  • Reykjadalur Hot Springs (30 km)

This upscale spa hotel has its own river view sauna and custom aromatherapy treatments available onsite.

  • Riverside location

  • Full spa service

  • Stylish rooms

$240-$370/night

Hotel Eldhestar

Hveragerði

  • Laugardalur Valley (10 km)
  • Reykjadalur Hot Springs (5 km)
  • Kerid Crater (20 km)

Combining horse-riding tours with geothermal spa relaxation, this unique retreat blends adventure and tranquility.

  • Equestrian activities

  • Great spa options

  • Sustainable focus

$180-$260/night

Arbakki Farmhouse Lodge

Arborg

  • Kerid Crater (20 km)
  • Reykjavik City (65 km)
  • Selfoss Town (10 km)

This intimate farmhouse lodge features private hot tubs with charming pastoral views, perfect for a calming escape.

  • Private hot tubs

  • Quiet atmosphere

  • Friendly hosts

$140-$210/night

Frequently asked question

What are the best areas in Southern Iceland to book a hotel?

Popular areas include Vik for its proximity to Reynisfjara (Black Sand Beach) and cliffs, Hella for its central location near hiking trails, and Hof for access to Skaftafell National Park.

Are there family-friendly hotels in Southern Iceland?

Yes, hotels like Hotel Laki near Kirkjubaejarklaustur often feature family rooms, play areas, and kid-friendly dining options.

What is the typical cost of hotels in Southern Iceland?

Expect to pay $150–$300 USD per night for a mid-range hotel and $400+ USD for luxury options, depending on the season.

Do hotels in Southern Iceland offer Northern Lights wake-up calls?

Yes, many hotels like Fosshotel Glacier Lagoon provide Northern Lights wake-up services, especially during peak viewing seasons between September and April.

Are there hotels close to waterfalls like Seljalandsfoss or Skógafoss?

Hotel Selja is located near Seljalandsfoss, while Hotel Skogafoss is a short walking distance from the iconic Skógafoss waterfall.

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