Accommodation in Iceland will probably be your most expensive item for the whole holiday on this beautiful island.
Iceland is a very popular tourist destination, which Icelanders are aware of and that is the reasons why are prices for accommodation so high.
It is almost impossible to find hotel room at around “budget price” 5000 ISK (50 USD), maybe just shared room or room with shared bathroom.
So where to stay when you are in Iceland for only a few days, you don´t want to spent a lot and still see as much as possible?
Bed and breakfast – farm Vatnsholt
This budget accommodation outside the city has two advantages.
It is cheaper than accommodation in cities, but the main reason why I recommend staying outside the city is to see the northern lights.
The aurora is what makes people go to Iceland often. Although you can only see it from around August to mid-April (because then the night is shorter and there is not enough darkness), it is definitely worth seeing this amazing attraction.
In order to be able to watch the Northern Lights, you need to have the darkest night possible, which is not possible in cities.
Icelandic farms, however, are far from civilization many kilometers and that is why it is possible to observe the aurora in such places.
The most popular farm in southern Iceland
Reconstructed from a former farm, this hotel is the ideal place to become your base for exploring Iceland’s best.
Hotel Vatnsholt is about 2 hours from the airport, so you can arrive there on the day of arrival.
It offers good-value accommodation with free breakfast, saving you a great deal of food expenses.
It´s close to waterfalls and geyser
The Vatnsholt Farm is an ideal place not only for reasonable prices but also for an ideal location.
The location of the hotel allows you to explore Iceland’s most famous tourist destinations, whether you go east, west or north of Iceland.
The hotel is about an hour from the Golden Circle, where you can see the most famous geyser in the world, the most massive waterfall in Iceland or Thingvellir National Park.
If you go in the opposite direction, you can admire the beautiful waterfalls Seljalandsfoss and Skogafoss, Blackbeach Reynisfjara or the wreck of the plane DC 3.
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