Where to stay in Southern Iceland
Find the best Southern Iceland areas and neighborhoods for the activities you enjoy most. Learn more about Southern Iceland
Downtown Reykjavik
3 out of top 10 points of interest in this area
If you're spending some time in Downtown Reykjavik, Hallgrimskirkja and National Gallery of Iceland are top sights worth seeing.
Háaleiti
When in Háaleiti, you can plan a visit to Kringlan Shopping Mall and Laugardalslaug Geothermal Pool, some noteworthy sights in the nearby area.
Vesturbær
1 out of top 10 points of interest in this area
The abundant dining options and waterfront views are top of the list for many visitors to Vesturbær. A stop by Reykjavik Harbour or Landakotskirkja might round out your trip.
Laugardalur
Laugardalur is popular for its abundant dining options, and if you're looking for more to see and do, you might think about a trip to Laugardalslaug Geothermal Pool or Laugavegur.
Tún
If you're spending some time in Tún, Laugavegur and Hofdi House are top sights worth seeing.
Top hotels in Southern Iceland
Hotel Vík í Mýrdal
Klettsvegur 1-3 Vik I Myrdal
9.161.350 ₫
10.340.509 ₫ total
7 Oct - 8 Oct
includes taxes & fees
9.4/10 Exceptional! (1,277 reviews)
"When you arrive you might be distressed to see the new building attached to an old structure. I was afraid this was going to be a bait and switch situation, but it was not. I had a great room and everything worked well. I would recommend this hotel, and also try to get a room on the front so you ..."
Reviewed on 10 Sept 2026
Hotel Reykjavík Grand
Sigtun 28 Reykjavik
Fully refundableReserve now, pay when you stay
6.263.743 ₫
7.125.419 ₫ total
5 Oct - 6 Oct
includes taxes & fees
CityHub Reykjavik
46 Hverfisgata Reykjavik Reykjavíkurborg
Fully refundableReserve now, pay when you stay
3.567.700 ₫
4.131.802 ₫ total
15 Sept - 16 Sept
includes taxes & fees
9.2/10 Wonderful! (649 reviews)
"It was in a very accessible location, and the staff was great! I would definitely stay there again."
Reviewed on 10 Sept 2026
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.
Stay near popular Southern Iceland attractions
Reykjavik Harbour
9.2/10 (8,713 reviews)
Reykjavík's historic harbour pulses with maritime culture amid colourful repurposed fishing buildings. Embark on whale watching or Northern Lights cruises while enjoying panoramic views of Faxaflói Bay and Mount Esja.
Blue Lagoon
9.4/10 (4,050 reviews)
Iceland's iconic Blue Lagoon offers milky-blue geothermal waters rich in minerals amid volcanic landscapes. Reserve a twilight soak to experience the ethereal atmosphere while enjoying silica mud masks.
Hallgrimskirkja
9.2/10 (7,612 reviews)
Hallgrímskirkja rises like Iceland's basalt columns in concrete form, dominating Reykjavik's skyline. Take the lift to the observation tower for sweeping city views framed by distant mountains.
Laugavegur
9.4/10 (6,657 reviews)
Reykjavik's main thoroughfare pulses with colourful boutiques, Icelandic design shops, and lively cafés. Wander between art galleries and cosy restaurants before experiencing the street's legendary nightlife scene.
Harpa
9.2/10 (5,664 reviews)
Harpa's geometric glass façade reflects Iceland's volcanic landscape and Northern Lights, creating a dazzling waterfront landmark. Experience world-class performances or tour this architectural masterpiece from within.
Thingvellir National Park
9.4/10 (4,157 reviews)
Walk between two tectonic plates at this UNESCO site where Iceland's first parliament was established in 930 AD. Explore the Almannagjá Gorge's dramatic fissures and witness the Öxarárfoss waterfall's cascading beauty.
Frequently asked questions
How much does a Southern Iceland holiday package cost?
The most affordable Southern Iceland package is , so your dream trip can become a reality — without breaking the bank. Combine flights, hotels and car rentals to customize a package suited to your travel style.
How do I get a cheap travel package to Southern Iceland?
You'll save a pile of money if you bundle your flights, hotels and car rentals into a Southern Iceland travel package. Sometimes cheap means fewer choices. But not with Expedia. We offer over 550 partner airlines and 1null000null000 properties all over the world, so you'll always have plenty of variety to choose from. Want to save even more? Add some fun activities to your package deal and unlock even bigger discounts! After all, travel is about more than simply getting to your destination.
Where should I stay in Southern Iceland?
You'll have lots to do in Reykjavik, with well-known landmarks like Hallgrimskirkja and Blue Lagoon to explore. Or, if sights like Thingvellir National Park and Geysir Hot Springs are more your style, Bláskógabyggd is the place to head.
What are the top hotels in Southern Iceland?
When it comes to properties in Reykjavik, Centre Hotels Plaza and Reykjavik Residence Hotel are among the favourites. If you're also visiting Golden Circle, Hotel Vík í Mýrdal and Courtyard by Marriott Reykjavik Keflavik Airport will make you feel right at home.
How far in advance should I book my Southern Iceland holiday?
While not all air carriers release tickets early, it's usually possible to compare international fares on Expedia up to a year in advance. This is when you can score some fantastic bargains. If you've left things to the last minute, you may still be in luck. Sometimes the cheapest prices appear a few weeks before departure.
What does an Expedia Southern Iceland travel package include?
Hotels, flights and rental cars, or any combination of them — it's your pick! Whether you're visiting Southern Iceland with the whole family or travelling by yourself, there's a package to suit every budget and style. Once you've made your booking, why not add on a few tours as well?
What should I know before booking a Southern Iceland travel package?
Our prices are always low. However, you'll score even better deals if you book your hotels, flights and car rentals together. With an Expedia package, you'll get transparent pricing and a terrific range of choice.
Can I choose my airline with a Southern Iceland Expedia holiday package?
With a holiday package, you're in charge. Whether you'd like to fly to Southern Iceland in business or coach, simply select from the available airline options. Expedia has access to more than 550 airline partners worldwide.
If I'm not able to travel, can I cancel my Southern Iceland holiday package?
You sure can, and we'll help you every step of the way. You may be able to cancel and rebook your Southern Iceland holiday package for free if you booked in the last 24 hours. But you may incur a fee from your airline, hotel or car rental company for older bookings. If your travel plans unexpectedly change, take a look at our Customer Service Portal for more information.
