In the South of Iceland you can always find accommodation to your liking. Here there are hotels, big and small, from luxurious conference halls to small and friendly country hotels. Guest houses, hostels, farmhouse accommodation and small cottages are to be found all over. Then there are also some good camping sites in the South, often in connection with diverse services.
If you prefer relaxation you can find a small, cosy, friendly place, even a farmhouse where you are offered the national flatbread, crullers, pancakes with whipped cream and hot chocolate.
More information at www.south.is