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Southern Iceland Hotels for Your Next Holiday

Why Tourists Visit Southern Iceland

  • • Explore the Seljalandsfoss waterfall where you can walk behind the cascading water.
  • • Visit Reynisfjara, the famous black sand beach with its basalt columns.
  • • Tour the Golden Circle, including Geysir geothermal area and Gullfoss waterfall.
  • • Take an ice cave tour or glacier hike on Vatnajökull Glacier.
  • • Witness the Northern Lights in remote, dark-sky areas.

Southern Iceland offers about 150 accommodation options ranging from budget guesthouses to luxury hotels, with most located in towns like Hella, Vik, and Selfoss. Average costs for 3-star hotels start at $150 per night, while 5-star properties like Hotel Rangá can cost upwards of $300 per night. Recently opened options, such as the Vök Rooms near Vik, feature modern Scandinavian design and eco-friendly amenities.

Southern Iceland is a must-visit region known for its dramatic landscapes, including glaciers, black sand beaches, and iconic waterfalls like Seljalandsfoss and Skógafoss.

Tourists flock to this area for its accessibility from Reykjavik and proximity to some of Iceland's most famous attractions such as Jökulsárlón Glacier Lagoon and the Golden Circle.

The region’s unique mix of natural wonders and cultural experiences, including lava fields and charming small towns, makes it a favorite destination for travelers of all types.

Southern Iceland Tips You Must Know

• Book hotels 2-3 months in advance, especially for summer and holiday seasons, as popular spots often sell out quickly.

• Rental cars are essential for exploring, as public transportation is limited outside major towns.

• Check for hotels offering free breakfast and laundry services to save time and money.

• Winter travelers should prioritize hotels with easy road access and heated indoor facilities due to icy conditions.

• Always verify cancellation policies, as weather and road closures can disrupt travel plans.

Reykjavík

Reykjavík, the capital of Iceland, is the world’s northernmost capital and brims with culture, including street art and the iconic Hallgrímskirkja church. The city’s Old Harbour area offers whale watching tours and the sensational Harpa concert hall. Its proximity to geothermal sites like the Blue Lagoon makes it a perfect launchpad for Southern Iceland adventures.

Explore the hotels in Reykjavík to enjoy everything from vibrant cultural sites to relaxing geothermal experiences.

Selfoss

Selfoss, located along the Ölfusá river, is a charming hub famous for its small-town vibe and delicious local bakeries. The Bobby Fischer Center celebrates the life of the eccentric chess master. It is also a perfect base for exploring the Golden Circle attractions nearby.

Discover the hotels in Selfoss and enjoy easy access to both the town’s local eateries and natural wonders.

Vík í Mýrdal

Vík í Mýrdal, Iceland's southernmost village, is known for its dramatic black sand beach, Reynisfjara, and nearby cliffs teeming with puffins in summer. The towering Reynisdrangar sea stacks evoke tales of Icelandic folklore. Its scenic setting at the foot of Katla Volcano attracts photographers and avid hikers alike.

The hotels in Vík í Mýrdal offer a cozy retreat after marveling at some of Iceland’s most breathtaking coastal landscapes.

Hvolsvöllur

Hvolsvöllur is a small town with big adventures, being part of Iceland’s famous Saga Trail. The nearby Saga Center explores the epic tales of Njál’s Saga, and the area offers access to the stunning Seljalandsfoss and Gljúfrabúi waterfalls. Its peacefulness makes it a hidden gem for travelers wanting to unwind.

Check out the hotels in Hvolsvöllur for a peaceful stay with a taste of Icelandic history and natural beauty.

Hella

Hella is a quiet town on the banks of the Ytri-Rangá river, known as a hotspot for salmon fishing enthusiasts. It serves as a gateway to the unspoiled Highlands and Mount Hekla, one of Iceland’s most active volcanoes. Stargazing under dark skies is a major draw, often paired with breathtaking Northern Lights views.

Browse the hotels in Hella for a mix of fishing, stargazing, and volcanic exploration.

Stay Central: Where Convenience Meets Beauty

Find more Central hotels in Vík for easy access to stunning beaches and vibrant cultural landmarks.

Hotel Name
Description
#
Price per night

Hotel Kria

Vík

  • Reynisfjara Beach (10 km)
  • Dyrhólaey (14 km)
  • Reynisdrangar (11 km)

Hotel Kria features sleek Nordic architecture and is a short walk to Vík’s black sand beaches, making it a favorite for design and nature lovers alike.

  • Stylish design

  • Central location

  • Scenic views

$180-$250/night

Guesthouse Carina

Vík

  • Reynisfjara Beach (9 km)
  • Katla Volcano (25 km)
  • Sólheimajökull Glacier (20 km)

Guesthouse Carina offers cozy rooms with homemade breakfast sourced from local ingredients and breathtaking views of the Vík coastline.

  • Friendly hosts

  • Local breakfast

  • Close to attractions

$120-$160/night

Icelandair Hotel Vik

Vík

  • Reynisdrangar (10 km)
  • Mýrdalsjökull Glacier (20 km)
  • Dyrhólaey (14 km)

Known for its vibrant orange exterior and excellent restaurant, this hotel overlooks Reynisfjara’s volcanic beach.

  • Modern amenities

  • Top-notch restaurant

  • Fantastic beach views

$200-$270/night

Luxury Escapes in Southern Iceland

Find more Luxury hotels in Selfoss and beyond for extraordinary relaxation and comfort.

Hotel Name
Description
#
Price per night

Stracta Hotel

Hella

  • Hekla Volcano (20 km)
  • Seljalandsfoss (35 km)
  • Landmannalaugar (90 km)

Stracta Hotel offers luxurious outdoor hot tubs and a focus on sustainable travel, perfect for environmentally-conscious luxury seekers.

  • Eco-friendly

  • Hot tubs

  • Great location for exploring

$250-$300/night

Hotel South Coast

Selfoss

  • Geysir (65 km)
  • Thingvellir National Park (55 km)
  • Gullfoss (70 km)

Located in Selfoss, this hotel stands out for its modern spa facilities and proximity to the famous Golden Circle route.

  • Modern spa

  • Spacious rooms

  • Central to attractions

$220-$280/night

Hotel Geysir

Haukadalur

  • Strokkur Geyser (0.3 km)
  • Gullfoss Waterfall (10 km)
  • Laugarvatn (30 km)

Nestled directly across from the iconic geothermal valley, Hotel Geysir offers luxury rooms themed around Icelandic nature.

  • Amazing location

  • Unique design

  • Close to natural wonders

$300-$400/night

Boutique Hotels with a Twist

Discover more Boutique hotels in Selfoss and surrounding towns for unique stays with a hint of personality.

Hotel Name
Description
#
Price per night

Guesthouse Vatnsholt

Selfoss

  • Geysir (50 km)
  • Thingvellir National Park (40 km)
  • Seljalandsfoss (45 km)

Set in a former farmhouse, Guesthouse Vatnsholt features a petting zoo for kids and panoramic views of Iceland’s rural landscape.

  • Unique setting

  • Family-friendly

  • Great countryside views

$120-$170/night

Hotel Kanslarinn Hella

Hella

  • Seljalandsfoss (34 km)
  • Hekla Volcano (25 km)
  • Landmannalaugar (80 km)

Known for its cozy and eclectic design, this boutique hotel was a popular rest stop for travelers on Iceland’s Ring Road.

  • Unique design

  • Quiet rooms

  • Convenient location

$140-$190/night

Heradsskolinn Historic Guesthouse

Laugarvatn

  • Laugarvatn Hot Springs (1 km)
  • Thingvellir National Park (20 km)
  • Geysir (25 km)

A former school turned charmingly rustic guesthouse, Heradsskolinn features quirky decor and a library of Icelandic literature.

  • Historical charm

  • Unique decor

  • Proximity to nature

$100-$150/night

Family Getaways Made Easy

Book Family Friendly hotels in Vík or Hornafjörður for a perfect family-friendly adventure.

Hotel Name
Description
#
Price per night

Hotel Dyrholaey

Vík

  • Reynisfjara Beach (6 km)
  • Dyrhólaey (4 km)
  • Reynisdrangar (6 km)

This hotel offers spacious family rooms and stunning sunsets over the iconic nearby arch-shaped cliffs.

  • Family-friendly

  • Great views

  • Good restaurant

$180-$220/night

Hotel Katla By Keahotels

Vík

  • Reynisfjara Beach (11 km)
  • Dyrhólaey (7 km)
  • Katla Volcano (18 km)

Located near Mýrdalsjökull Glacier, this family-friendly hotel provides outdoor hot tubs popular with parents and kids alike after long day tours.

  • Hot tubs

  • Ample parking

  • Comfortable family rooms

$200-$250/night

Vagnsstadir Guesthouse

Hornafjörður

  • Jökulsárlón Glacier Lagoon (30 km)
  • Diamond Beach (32 km)
  • Skaftafell Park (45 km)

Perfect for a family road trip, it offers panoramic views of Vatnajökull National Park while delivering cozy communal areas for bonding.

  • Scenic location

  • Friendly staff

  • Family rooms available

$110-$150/night

Relaxation: Southern Iceland’s Spa Hotels

Find soothing Spa hotels in Selfoss and nearby towns for the ultimate relaxation experience.

Hotel Name
Description
#
Price per night

Hotel Selfoss

Selfoss

  • Thingvellir National Park (46 km)
  • Geysir (65 km)
  • Seljalandsfoss (38 km)

This riverside hotel features a serene spa with a hammam and views over the Ölfusá River, perfect for evening relaxation.

  • Spa lovers' paradise

  • Waterfront location

  • Great dining options

$190-$250/night

Midgard Base Camp

Hvolsvöllur

  • Seljalandsfoss (22 km)
  • Hekla Volcano (40 km)
  • Landmannalaugar (85 km)

Known for its adventurous vibe, Midgard offers rooftop hot tubs where guests can take in the starry skies or Northern Lights.

  • Adventure-focused

  • Rooftop hot tub

  • Great community atmosphere

$160-$220/night

Hotel Eldhestar

Hveragerði

  • Reykjadalur Hot Spring (4 km)
  • Thingvellir National Park (40 km)
  • Geysir (80 km)

This unique spa hotel is famous for its on-site horseback riding facilities and geothermal hot tubs, reflecting Icelandic heritage.

  • Horseback riding

  • Geothermal hot tubs

  • Rural tranquility

$140-$200/night

Frequently asked question

What are the best hotel options near Seljalandsfoss waterfall?

Hotels like Hotel Selja and Country Hotel Anna offer close proximity to Seljalandsfoss, with mid-range options costing around $150 to $250 per night.

Are there family-friendly accommodations in Southern Iceland?

Yes, family-friendly hotels like Icelandair Hotel Vik often provide spacious family rooms and child-friendly dining options.

Where can I find boutique hotels in Southern Iceland?

Boutique options like Hotel Rangá near Hella provide luxury amenities such as hot tubs and gourmet dining, starting at $300 per night.

How much do budget accommodations in Southern Iceland cost?

Budget options like guesthouses and farm stays typically cost between $100 and $150 per night in towns like Selfoss or Hvolsvöllur.

Do hotels in Southern Iceland offer Northern Lights viewing?

Hotels like Fosshotel Glacier Lagoon are ideal for Northern Lights viewing due to their remote locations and dark skies.

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