Southern Iceland Holidays

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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
A cityscape with a prominent church, a body of water, and snow-capped mountains in the background.

Downtown Reykjavik

4 out of top 10 points of interest in this area

If you're spending some time in Downtown Reykjavik, Hallgrimskirkja and Reykjavik Pond are top sights worth seeing.

A river flowing through a town with buildings and greenery.

Háaleiti

When in Háaleiti, you can plan a visit to Laugardalsholl and Kringlan Shopping Mall, some noteworthy sights in the nearby area.

A row of white buildings with dark trim and a balcony.

Hlíðar

Though Hlíðar may not have many top sights, you can venture to the surrounding area to see attractions like Reykjavik Harbour and Perlan.

Two boats named 'Christina' and 'Andrea' docked at a marina with a rocky breakwater and a mountainous backdrop.

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.

A row of colorful townhouses with a clear blue sky.

Tún

If you're spending some time in Tún, Laugavegur and Hofdi House are top sights worth seeing.

Top hotels in Southern Iceland

Center Hotels Plaza

Center Hotels Plaza

Adalstraeti 4 Reykjavik
Fully refundableReserve now, pay when you stay
Rp5.867.424
Rp6.628.857 total
7 Sept - 8 Sept
includes taxes & fees
8.8/10 Excellent! (1,408 reviews)
"The hotel was conveniently located near the temple district and other sightseeing. Breakfast was great and the staff was friendly."

Reviewed on 6 Aug 2026

Center Hotels Plaza
Hotel Reykjavík Grand

Hotel Reykjavík Grand

Sigtun 28 Reykjavik
Rp5.591.755
Rp6.322.864 total
7 Sept - 8 Sept
includes taxes & fees
9/10 Wonderful! (1,022 reviews)
"Hotel Reykjavík Grand has a lot of potential, but unfortunately the management and housekeeping fell well below expectations. The rooms were spacious, clean, and comfortable, making the hotel itself a pleasant place to stay. The hotel also offered complimentary continental breakfast and provided ..."

Reviewed on 6 Aug 2026

Hotel Reykjavík Grand
Grandi by Center Hotels

Grandi by Center Hotels

Seljavegur 2 Reykjavik
Fully refundableReserve now, pay when you stay
Rp5.012.591
Rp5.679.992 total
25 Aug - 26 Aug
includes taxes & fees
9.4/10 Exceptional! (1,648 reviews)
"The rooms were fantastic and staff was very friendly. The breakfast was delicious but I wish I had pre-purchased the breakfast buffet. It would have been less costly."

Reviewed on 5 Aug 2026

Grandi by Center Hotels
See all 2,055 properties in Southern Iceland
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

A marina with various boats docked, a large ship in the background, and a cityscape with buildings.

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.
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A modern building with large windows and a wooden deck leading into a clear blue pool.

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.
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A street with a pink bicycle, a yellow bench, and various storefronts.

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.
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A waterfall cascading down a rocky cliff into a river.

Gullfoss

9.8/10 (564 reviews)
Part of a nature reserve, this waterfall crashing into a deep canyon is among the country’s most iconic features.
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A coastal landscape with a prominent green hill, a rocky cliff, and distinctive rock formations in the sea.

Black Sand Beach

9.8/10 (1,665 reviews)
Iceland's dramatic black sand beach features towering basalt columns and Reynisdrangar sea stacks. Keep a respectful distance from the powerful Atlantic waves while watching for puffins nesting in summer.
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A modern building with a reflective glass facade, surrounded by a marina with several boats.

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.
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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 1,000,000 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.
* Savings based on package bookings compared to the price of the same components booked separately. Savings not available on all packages.