Northern Europe · Budget
Cheap Hotels in Iceland
Updated 2026-05-08 · 216+ properties · Live availability via IMPT · Same prices as the major OTAs
Travelling on a budget should not mean sacrificing comfort or sustainability. Iceland has thousands of well-rated, affordable hotels across its top cities — many with breakfast, free Wi-Fi and free cancellation included. Reykjavík, Akureyri and Vík concentrate the highest-rated inventory; secondary cities deliver consistently sharper value. From-prices in Iceland start around $108/night.
480+ Iceland hotels · 1 tonne CO₂ retired per stay · €5 free credit on signup · 5% back per booking
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About Iceland
Iceland's hotel sector is small (under 500 hotels) and runs at premium prices, but the inventory is among the world's most distinctive — geothermal-spa hotels, glacier-edge wilderness lodges and aurora-viewing boutique stays. Capital: Iceland's Reykjavík. Currency: ISK. Best months: June–August, January–March (Northern Lights).
Top 10 cities for cheap hotels in Iceland
City-level live availability — every search button below jumps directly into IMPT's funnel pre-filled with that city's destination, lat/lng and country code. Same prices as Booking.com, with carbon offset and 5% back included.
| City | Hotels | From | |
Reykjavík Laugavegur-area heritage hotels and Reykjavik-101 design boutiques concentrate Iceland's flagship hotel market.… |
38+ |
from $108/night |
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Akureyri Town-centre boutique hotels and Eyjafjörður-edge heritage stays anchor Iceland's primary northern hotel city.… |
36+ |
from $113/night |
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Vík Black-sand-beach-front guesthouses and Reynisfjara-edge boutique stays concentrate Iceland's most photographed south-coa… |
33+ |
from $118/night |
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Höfn Vatnajökull-edge heritage hotels and harbour-front boutique stays anchor southeastern Iceland's flagship glacier-tourism… |
31+ |
from $124/night |
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Selfoss Town-centre boutique hotels and Golden-Circle-edge resort stays anchor southern Iceland's primary base hotel market.… |
28+ |
from $129/night |
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Húsavík Whale-watching-harbour-front boutique hotels concentrate Iceland's flagship marine-wildlife hotel market.… |
25+ |
from $135/night |
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Egilsstaðir Town-centre heritage hotels anchor East Iceland's primary regional hotel market.… |
23+ |
from $140/night |
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Borgarnes West-coast heritage hotels and Settlement-Centre-area boutiques anchor Iceland's primary west-coast hotel market.… |
20+ |
from $145/night |
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Stykkishólmur Snæfellsnes-peninsula heritage hotels concentrate one of Iceland's most photographed small-town hotel markets.… |
18+ |
from $151/night |
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Hella South-Highlands-edge resort hotels and farm-stay boutiques anchor Iceland's primary highland-tourism hotel base.… |
15+ |
from $156/night |
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More cheap hotels across the IMPT network
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FAQ — cheap hotels in Iceland
What is the cheapest city in Iceland for hotels?
Hotel pricing in Iceland varies sharply by city — capital Reykjavík runs at a premium, while secondary cities and the regions deliver consistently lower nightly rates. Off-peak (outside June–August, January–March (Northern Lights)), entry-level rooms in Iceland commonly drop to around $145/night. IMPT shows live, sortable pricing across all Iceland properties at the same rates as the major OTAs.
What is the cheapest time to visit Iceland?
Off-peak in Iceland (outside the main June–August, January–March (Northern Lights) window) typically delivers 20–40% lower hotel rates with full inventory available. Capital city Reykjavík runs higher year-round than the rest of the country, and major events can push prices up sharply. Booking through IMPT keeps the same nightly rate as the major OTAs, with €5 free credit on signup and 5% back on every stay (3% to a carbon cause, 2% to your next-stay credit).
What is the local currency in Iceland?
The local currency in Iceland is ISK. IMPT shows hotel prices in the destination's currency by default, so you can compare like-for-like with local sites. You can switch to GBP, EUR or USD with one click. Most hotels in Iceland accept Visa and Mastercard; some smaller properties in remote regions remain cash-only.
What are the best months for cheap hotels in Iceland?
The peak months for travel in Iceland are June–August, January–March (Northern Lights). Hotel inventory is fullest and weather most reliable in this window. For cheap hotels specifically, shoulder-season weeks at either end of the peak window typically deliver the best balance of value and weather. IMPT shows live availability across 480+ Iceland properties — you can compare full-year availability and pricing in seconds.
Do I need a visa to visit Iceland?
Schengen visa rules apply. IMPT does not handle visa applications, but free hotel cancellation up to 48 hours before check-in is available on most Iceland properties — book first, sort travel docs without risk.
Ready to book? Search live availability across 480+ Iceland hotels at app.impt.io/find-hotel-input — same prices as the major OTAs, plus carbon offset and 5% back per stay.