Best Budget Stays in Fellabær, Iceland
Fellabær is a small town in East Iceland, facing Egilsstaðir across the river, and it is one of the more practical places to stay on a careful budget. Many of the stays here include free parking and free WiFi, and several have a kitchen or a shared kitchen, which lets you cook instead of eating out every night. Lyngás Guesthouse, Eyjólfsstadir Guesthouse and Ormurinn Cottages are the ones I would open first. They sit close to Egilsstaðir Airport, the Vök Baths and Hallormsstaður Forest, so you can cover the area by car without paying for extras.
Fellabær is a small town in East Iceland, across the river from Egilsstaðir and close to the airport. It is quiet and practical, with guesthouses, cabins and a few services, and it works as a base for the Vök Baths and Hallormsstaður Forest.
Where to stay
Free parking, kitchens and a short drive
Why Fellabær works on a budget
Staying on a budget in Iceland comes down to two habits: cooking some meals yourself and avoiding paid extras. Fellabær supports both. Lyngás Guesthouse lists free WiFi, free parking and kitchens in some rooms, with an airport shuttle available, and it is a five-minute walk from the East Iceland Heritage Museum. Birta Guesthouse offers a shared kitchen, a garden and free parking, with some rooms including a private kitchen. Because several stays include breakfast or kitchen access, you spend less on food and keep your daily costs predictable. That is the main saving here.
For a stay close to the airport, Eyjólfsstadir Guesthouse is a 3-star guesthouse about 17 minutes from the airport, with free breakfast, WiFi and parking, kitchens in some rooms and an airport shuttle. It scores 9.0 from 268 reviews. Vínland Guesthouse offers rustic rooms and a terrace, with free WiFi, parking and airport transfers, about 13 minutes from the airport and 5 minutes by taxi from the Vök Baths. If you arrive late or leave early, these two take much of the stress out of the first and last day.
For cabins, Ormurinn Cottages offers budget cabins just off Route 1, a short taxi ride from the Vök Baths, with free WiFi, parking and a kid-friendly setting, and it scores 9.4. Skipalækur Guesthouse and Camping sits on a lakeside, with simple quarters, some with terraces and barbecue grills, a seven-minute walk from Fellabær - Olís. It scores 9.2 from 225 reviews. Both are good if you prefer a quiet setting and want somewhere to grill a simple dinner outdoors. Birta Guesthouse is described as kid-friendly too, so families on a tight budget have several simple options to compare.
For the best guest score, Mjóanes accommodation stands out at 9.8 from 261 reviews. It is a budget-friendly hotel with free breakfast, WiFi and parking, a hot tub, pet-friendly rooms and some rooms with a kitchen, about five minutes by taxi from Hallormsstaður Forest. That combination of a hot tub and a kitchen is unusual at this level. It is a good fit if you want a soak after a day of driving without moving up to a pricier hotel. Eyjólfsstadir Guesthouse is also described as kid-friendly and smoke-free, which is worth knowing if you travel with children and want a calm night.
A traveler's takeIf you want the lowest-effort budget base, I would book Eyjólfsstadir Guesthouse for its free breakfast and airport proximity, or Lyngás Guesthouse for a kitchen and a short walk to the museum. For a quieter night, Mjóanes accommodation is the one I would choose, as its hot tub and kitchen are rare at this level.
Budget & guesthouseMjóanes accommodation
Budget-friendly stay near Hallormsstaður Forest with hot tub and pet-friendly rooms
Why guests love itMjóanes accommodation is a budget-friendly two-star stay five minutes by taxi from Hallormsstaður Forest, with free breakfast, WiFi and parking. Guests can use a hot tub, and some rooms include a kitchen, so families and pet owners are catered for. The listing gives few other details, so ask about room types when booking. Guests rate it 9.8 across 261 reviews, an outstanding score on a solid sample.
Budget & guesthouseOrmurinn Cottages
Practical, kid-friendly cabins near Vök Baths with free parking
Why guests love itOrmurinn Cottages offers budget-friendly cabin stays just off Route 1 in Fellabær, a 6-minute taxi ride from Vök Baths. The cottages are kid-friendly and come with free WiFi and free parking, which makes them a practical base for East Iceland. Guests rate them 9.4 across 114 reviews. Our editorial verdict: an inexpensive, family-friendly cabin stop on the ring road, handy for the baths.
Budget & guesthouseHafaldan Old hospital hostel- Seydisfjordur
A historic hospital-turned-hostel with a spa and shared kitchen
Why guests love itHafaldan occupies a former hospital in Seyðisfjörður, which gives the hostel its character. There is a shared kitchen, a bar and a spa area with a sauna, so evenings are easy to fill. The Rainbow Walk is 6 minutes away on foot. Parking and WiFi are free, and breakfast is available for a fee. A very well rated budget option for travellers happy to share.
Budget & guesthouseSkipalækur Guesthouse and Camping
Lakeside guesthouse with simple rooms, terraces, and BBQ grills
Why guests love itFellabær sits on the west bank of Lagarfljót, across the bridge from Egilsstaðir on Route 1 in East Iceland, and Skipalækur is a seven-minute walk from the village fuel station. Some of its simple lakeside rooms have their own terrace and BBQ grill. Our editorial view: shop in Egilsstaðir, grill dinner by the lake in summer, and use the free parking as a calm base for the Eastfjords and Hengifoss waterfall.
Budget & guesthouseGistihús Olgu
Simple guesthouse with free breakfast, Wi-Fi, and a garden in Fellabær
Why guests love itI would choose Gistihús Olgu for a simple, practical night in Fellabær. It is a low-key guesthouse two minutes on foot from the East Iceland Heritage Museum, with simple rooms, some with kitchens, plus free Wi-Fi, free parking and a garden. Breakfast is included, and Glóð Restaurant is a 4-minute walk. Guests rate it 9.2 across 78 reviews. It is plain rather than polished, so I would pick it for budget-minded travellers and families who want the basics well covered.
Budget & guesthouseOrmurinn Guesthouse
Budget-friendly guesthouse with kitchens, close to Vök Baths
Why guests love itOrmurinn Guesthouse in Fellabær is a budget-friendly 1-star hotel, a 6-minute walk from the Fellabær Olís station. Free WiFi and free parking are included, and some rooms have a kitchen, which suits families and longer stays. Vök Baths are 5 minutes away by taxi. Guests rate it 9 across 79 reviews. Our editorial verdict: a plain, inexpensive stop with a kitchen option, near the baths.
Budget & guesthouseEyjólfsstadir Guesthouse
A budget-friendly guesthouse near the airport with free breakfast and parking
Why guests love itEyjólfsstadir Guesthouse is listed as a 3-star property 17 minutes from the airport, with free breakfast, WiFi and parking. Some rooms have a kitchen, an airport shuttle is available, and the property is kid-friendly and smoke-free. Guests rate it 9 across 268 reviews. Our editorial verdict: a practical, family-friendly stop in the Fellabær area, where the free breakfast and the shuttle save time on travel days.
Budget & guesthouseVínland Guesthouse
Rustic guesthouse with free Wi-Fi and airport transfers near Vök Baths
Why guests love itVínland Guesthouse is an unassuming three-star stay with rustic rooms and a terrace. Free WiFi, free parking and airport transfers are included, and the airport is 13 minutes away, with Vök Baths five minutes by taxi. That makes it handy for a family with an early or late flight in East Iceland. A rating of 8.6 across 156 reviews is solid for the price tag. I would choose it for a simple, practical overnight rather than a long holiday stay.
Budget & guesthouseBirta Guesthouse
Simple rooms with shared kitchen, garden, and free parking in Fellabær
Why guests love itBirta Guesthouse in Fellabær is a three-star, kid-friendly guesthouse with simple, down-to-earth rooms and free Wi-Fi. It has a shared kitchen, a garden and free parking, and some rooms have a private kitchen. The East Iceland Heritage Museum and Glóð Restaurant are a short walk away. Guests rate it 8.6 across 116 reviews, and I would pick it for budget-conscious travellers who want a kitchen.
Budget & guesthouseLyngás Guesthouse
Budget-friendly guesthouse with kitchens and airport shuttle
Why guests love itLyngás Guesthouse in Fellabær is a budget-friendly stay with free WiFi and parking, a 5-minute walk from the East Iceland Heritage Museum. Some rooms have a kitchen, and an airport shuttle is available, which helps on arrival and departure days. The listing calls it kid-friendly. Guests rate it 8.2 across 355 reviews. Our editorial verdict: a plain, inexpensive base for a family that wants a kitchen option and a walkable museum.
Budget & guesthouseEast Guesthouse
Budget-friendly stay near museums and local dining in Fellabær
Why guests love itEast Guesthouse in Fellabær is simple, budget-friendly accommodation with basic rooms. The listing places it a 7-minute walk from the East Iceland Heritage Museum, with Askur Pizzeria 4 minutes away on foot, and says public transport to the airport is easy. Guests rate it 8.2 from 9 reviews. Our editorial verdict: a plain, inexpensive stop for a night or two, with a pizzeria and a museum on foot.
Budget & guesthouseEiðar - Hostel & Apartments
Budget-friendly hostel and apartments with free Wi-Fi and parking
Why guests love itEiðar - Hostel & Apartments is a budget-friendly two-star stay in the Fellabær area, 11 minutes by taxi from the airport, with free WiFi and free parking. The listing gives few details on rooms and facilities beyond essential amenities, so check whether you are booking a hostel room or an apartment before you commit. Guests rate it 8.0 across 99 reviews, a modest sample, so it is best seen as a plain, practical stop.
Local tips
- 1Choose a stay with a kitchen, such as Lyngás Guesthouse or Birta Guesthouse, and cook at least a few dinners to keep food costs down.
- 2Look for stays with free breakfast, like Eyjólfsstadir Guesthouse and Mjóanes accommodation, to start the day without paying extra.
- 3Use free parking: Lyngás Guesthouse, Eyjólfsstadir Guesthouse, Vínland Guesthouse and Ormurinn Cottages all list it.
- 4Ask about the airport shuttle at Lyngás Guesthouse, Eyjólfsstadir Guesthouse or Vínland Guesthouse before you arrive or leave.
- 5Visit the Vök Baths on a clear afternoon; Ormurinn Cottages and Vínland Guesthouse are about 5 to 6 minutes by taxi from them.
- 6Pack warm layers and rain gear, since East Iceland weather changes quickly and cheaper stays offer simple rooms.