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The best cheap hotels in West Iceland

Check out our pick of great cheap hotels in West Iceland

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Superb: 9+ Very good: 8+ Good: 7+ Pleasant: 6+
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Facing the seafront in Búðardalur, The Castle features a garden and barbecue facilities. The property has sea and mountain views. There is a sun terrace and guests can make use of free WiFi, free private parking and an electric vehicle charging station. I absolutely enjoy the location of the house, on the shore of the fjord and in a peaceful part of the city. It is a great option if you are looking to chase the northern lights as well. Also, the hot tubs are amazing. Thank you for that. It is my second time staying here so I guess this basically sums up everything. And I would definitely return!

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9.1
Superb
1,299 reviews
Price from
US$108
per night

Peninsula Suites is located in Hellnar. This property offers access to a balcony, free private parking and free WiFi.

The aparthotel with a terrace and sea views features 1 bedroom, a living room, a flat-screen TV, an equipped kitchenette with a microwave and a toaster, and 1 bathroom with a walk-in shower. Towels and bed linen are provided in the aparthotel. This aparthotel is non-smoking and soundproof. I can say that it was THE BEST accommodation during our 10 day trip around Iceland. Nice location - right on the sea with incredible views. Very well planned interior with nice furniture. The cottage has very large glass windows giving you incredible views on the sea and surroundings but in the same time the distance between other cottages is also good. Very nice bathroom. Cosy bed and couch. Also pretty good price. In overal: all was amazing - location, the cottage, etc. Also they are very fast with replies on Booking.com 10/10 - perfect.

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9.8
Exceptional
153 reviews

Hotel Stafholt has a garden, terrace, a restaurant and bar in Varmaland.

At the hotel, the rooms are equipped with a wardrobe. With a private bathroom fitted with a shower and a hairdryer, rooms at Hotel Stafholt also feature free WiFi, while some rooms also feature a mountain view. All guest rooms will provide guests with a desk and a kettle. The room is spacious and there is a nice area by the window to sit and look out. The chicken soup that was served for dinner was the best chicken soup I've ever had. The staff are super friendly and great to talk to. Just such a lovely hotel.

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9.2
Superb
1,000 reviews
Price from
US$167
per night

Kambur Cottages has sea views, free WiFi and free private parking, situated in Snæfellsbær. With mountain views, this accommodation features a terrace. The guest house features family rooms.

All units at the guest house are fitted with a seating area. Every unit is fitted with a coffee machine and a private bathroom with a shower and bathrobes, while certain rooms have a fully equipped kitchen fitted with an oven. At the guest house, all units include bed linen and towels. Kitchen was well equipped and allowed us to make a few meals. Beds were comfortable. Beautiful natural surroundings. Laundry room available with a dryer which was excellent.

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9.2
Superb
121 reviews
Price from
US$282
per night

The Guesthouse at Dynjandi Falls is located in Bíldudalur and features a private beach area, an open-air bath and a shared lounge. This beachfront property offers access to free WiFi and free private parking. The guest house has a hot spring bath and a shared kitchen. We really enjoyed the quiet and remote location of the guesthouse. The room was clean and the beds were really comfortable. The house offers two beautiful bathrooms, a spacious kitchen, and a shared common area.

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9.5
Exceptional
105 reviews

Set in Grundarfjordur in the West Iceland region, Hafnir offers accommodation with free WiFi and free private parking.

The apartment consists of 1 bedroom, a living room, a fully equipped kitchen with a dishwasher and a coffee machine, and 1 bathroom with a walk-in shower and a hair dryer. Towels and bed linen are offered in the apartment. The property offers sea views. Ocean view and wind sound all night long!

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9.4
Superb
194 reviews
Price from
US$238
per night

A recently renovated homestay set in Borgarnes, Apartment Fernsicht features a garden. The property features sea and mountain views. The accommodation offers a shared kitchen and private check-in and check-out for guests. The place was clean, quiet & peaceful. The room was new or fully renovated & bed was so comfortable. Plus recycling 👍🏻 Lina the host was amazing <3

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9.5
Exceptional
101 reviews
Price from
US$174
per night

Set in Reykholt in the West Iceland region, Night & Day lodge - glass roof with hot tub features accommodation with access to a hot tub. This property offers access to a patio, free private parking and free WiFi. The property is non-smoking and is situated 36 km from Bjarnafoss. The Hot Tub!! Also the glass walls and roof!! 🪟

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9.4
Superb
162 reviews
Price from
US$345
per night

A recently renovated guest house set in Birkimelur, Strönd Guesthouse features barbecue facilities. This beachfront property offers access to a terrace, free private parking and free WiFi. The guest house features a hot tub and a shared kitchen. Hótel is small but all facilities are quite new and modern. The shared kitchen has new kitchenware and very convenient compared to other hotels that shared kitchen provided very old and not so clean kitchenware. It is located in remote area so it is quite peaceful and beautiful scenic view. We are happy there is very good warm pool nearby. The pool is cozy and not crowded at all.

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9.2
Superb
401 reviews

Situated in Borgarnes in the West Iceland region, Mófellsstaðakot has a patio and mountain views. The property features river views. There is a sun terrace and guests can make use of free WiFi, free private parking and an electric vehicle charging station. Our stay was wonderful! The cottage was cozy, warm, and had everything we needed. A special highlight was their two amazing dogs, Freya and Askur—such gentle and playful companions. Our 3-year-old absolutely loved playing with them (more than an hour in the cold), and it was such a nice touch to have dog toys in the cottage. The location was also perfect, with windows facing the northern lights direction. After three winter trips to the Nordic countries, we finally got to see the northern lights—right from the comfort of our warm cottage at 1 AM! It was truly a magical experience, and we were actually sad to leave.

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9.5
Exceptional
346 reviews
Price from
US$162
per night

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