A geothermal spa with multiple pools, a wooden bridge, and a modern building in the background.

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Southern Peninsula Accommodation: Most Popular Cities to Stay

A geothermal pool with clear blue water, surrounded by rocky terrain and mountains.
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Grindavik

Grindavik

Check availability on Southern Peninsula Cheap Hotels

Our top choices for Southern Peninsula cheap hotels

Property entrance

1. ABC Hotel by Reykjavik Keflavik Airport

ABC Hotel by Reykjavik Keflavik Airport
3.0 star property
Reykjanesbær
7.4 out of 10, Good, (793 reviews)
"Great location and value. "
United States
john
ABC Hotel by Reykjavik Keflavik Airport
A person in a swimming pool with a view of a cityscape and a bridge in the background.

2. Hótel Berg

Hótel Berg
4.0 star property
Reykjanesbær
9.4 out of 10, Exceptional, (1,143 reviews)
"Absolutely wonderful place to stay. Great and friendly staff and food tasty and delicious. Hiking trails and heated pool."
United States
Karen
The price is ₹19,408
₹22,171 total
includes taxes & fees
6 Nov - 7 Nov
Hótel Berg
A restaurant with wooden walls and large windows overlooking a body of water. Tables and chairs are arranged for dining.

3. Lighthouse Inn

Lighthouse Inn
3.5 star property
Suðurnesjabær
9.6 out of 10, Exceptional, (1,000 reviews)
"Close to the airport really cozy room great staff!"
United States
Brianna
The price is ₹14,224
₹16,413 total
includes taxes & fees
1 Nov - 2 Nov
Lighthouse Inn
A hotel room with a bed, bedside tables, a TV, and a view of the beach.

4. Hotel Keilir by Reykjavik Keflavik Airport

Hotel Keilir by Reykjavik Keflavik Airport
3.0 star property
Reykjanesbær
7.2 out of 10, Good, (948 reviews)
"The hotel was handy to shops and eating places. We were able to check in early which was really nice."
Australia
evan
The price is ₹18,402
₹21,053 total
includes taxes & fees
2 Nov - 3 Nov
Hotel Keilir by Reykjavik Keflavik Airport
A person in a red swimsuit standing in a water feature with a glass barrier, surrounded by a checkered floor and a bar area with a glass railing.

5. Hotel Keflavik by Reykjavik Keflavik Airport

Hotel Keflavik by Reykjavik Keflavik Airport
4.0 star property
Reykjanesbær
8.8 out of 10, Excellent, (1,002 reviews)
"Great location, close to the airport"
United States
Lindsey
The price is ₹17,413
₹19,953 total
includes taxes & fees
1 Nov - 2 Nov
Hotel Keflavik by Reykjavik Keflavik Airport
A modern building with a water channel running through it, surrounded by a barren landscape.

6. The Retreat at Blue Lagoon Iceland

The Retreat at Blue Lagoon Iceland
5.0 star property
Grindavik
9.8 out of 10, Exceptional, (173 reviews)
"2nd time staying here, does not disappoint, everything is perfect."
United States
Christopher
The Retreat at Blue Lagoon Iceland
A hotel room with a bed, desk, chair, TV, and a window with a view.

7. Start Hostel

Start Hostel
2.0 star property
Reykjanesbær
9.2 out of 10, Wonderful, (536 reviews)
"Stayed with family of five. Great location, awesome breakfast, super helpful staff. Would stay here again."
Canada
Jessica
The price is ₹11,421
₹13,411 total
includes taxes & fees
1 Nov - 2 Nov
Start Hostel
Spa

8. Diamond Suites by Reykjavik Keflavik Airport

Diamond Suites by Reykjavik Keflavik Airport
5.0 star property
Reykjanesbær
8.8 out of 10, Excellent, (56 reviews)
"Very nice suite, great breakfast"
United States
Lance
The price is ₹44,616
₹50,148 total
includes taxes & fees
2 Nov - 3 Nov
Diamond Suites by Reykjavik Keflavik Airport
A bunk bed in a room with a dark wall and a wooden floor.

9. ASTIN ER SVARID HOSTEL

ASTIN ER SVARID HOSTEL
1.0 star property
Keflavík
7.2 out of 10, Good, (5 reviews)
"Room was clean, close to airport"
Canada
Darren
The price is ₹13,280
₹15,365 total
includes taxes & fees
15 Oct - 16 Oct
ASTIN ER SVARID HOSTEL
Lowest 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.
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Top Southern Peninsula Hotel Reviews

Eldey Airport Hotel

Eldey Airport Hotel

10/10 Excellent
"This hotel truly feels like a warm hug! Such a lovely, welcoming atmosphere that makes you feel right at home. The owner, who helped us check in, was absolutely wonderful—so kind, helpful, and accommodating. He even helped us arrange transportation to the airport. The beds were very comfortable, everything was spotlessly clean, and the entire place had such a warm, inviting feel. We absolutely loved our stay and would highly recommend it!"
Emily 1-night trip
Posted 2 hours ago
Eldey Airport Hotel