The Best Budget Hotels for Seeing the Northern Lights

Seeing the Northern Lights is one of those travel experiences that almost seems too good to be true. Watching ribbons of green, purple and blue shimmer through the dark Arctic sky is firmly in bucket-list territory – but you don’t need to spend a fortune on hotels to be able to experience it.

Forget the ultra-luxury, glass-roofed Arctic resorts for a minute, and strip back to basics. For many, a comfortable bed and warm room is all that matters, because the hotel isn’t the main feature: the Northern Lights are. From cosy cabins in Finnish Lapland to converted accommodation in Arctic Norway, these are the best budget hotels for seeing the Northern Lights.

The Best Northern Lights Hotels on a Budget

1. STF Abisko Turistation – Abisko, Sweden

Rooms from £70 per night

If you want to see the Northern Lights on a budget, then Abisko is Sweden is a fantastic place to start.

This tiny little mountain village is located in Swedish Lapland, about 200km north of the Arctic Circle. It also sits within Abisko National Park, meaning that there is minimal light pollution and viewing the Northern Lights is almost a guarantee when the conditions allow.

STF Abisko Turistation is therefore one of the best budget options, because budget-friendly and rural Scandinavia often don’t go hand-in-hand. While there are also luxury lodges available, with some of the smaller rooms starting from just £70 per night, this is an ideal place to stay for aurora spotting.

Surrounded by mountains, snow, and minimal light pollution, this is easily one of the best places in Sweden to experience the Northern Lights without breaking the bank.

2. Hotel Inari – Inari, Finland

Rooms from £88 per night

Right on the shores of Lake Inari, around 300km north of Rovaniemi, in Finnish Lapland, is Hotel Inari, one of the most scenic hotels in the country.

It’s also a budget-friendly option for seeing the Northern Lights, thanks to minimal light pollution. Despite this, the hotel is conveniently located in the village, close to restaurants, shops and attractions, so that you’re not completely isolated or cut off from the outside world.

This is another benefit for cost-conscious travellers. You don’t need to pay a fortune for an all-inclusive Arctic Northern Lights experience in an ultra-luxury resort when there aren't many amenities nearby, which helps to keep the costs down.

Sitting on the shores of Lake Inari, wrapped up in plenty of warm layers while the aurora borealis dances above and shimmers in the lake is one of the most mesmerising experiences that you will cherish for a lifetime – and all for under £100 per night.

3. Hotel Cabin – Reykjavík, Iceland

Rooms from £107 per night

Reykjavík and budget-friendly don’t typically go together. But Hotel Cabin is an excellent option for those who want to experience the Icelandic Northern Lights without spending a fortune on accommodation.

The rooms are basic and compact, and everything you’d expect from a budget hotel, but the best part of being based in Reykjavík is that you can stay in the city, a convenient base for exploring the main sights, while also being located near any Northern Lights tours running from the capital into the darker countryside.

The best part about staying in Hotel Cabin is that you’re in a budget hotel in the Icelandic capital, so that you can spend your days exploring nearby waterfalls, geothermal pools and even the famous Golden Circle, then join a Northern Lights excursion or tour in the evening for the ultimate Icelandic nature experience.

4. Tromsø Lodge & Camping – Tromsø, Norway

Rooms from £64 per night

Sitting in the heart of Norway’s auroral zone, Tromsø, in far northern Norway, is one of the country’s best spots for seeing the aurora borealis.

Like its other Nordic neighbours, Norway also has a reputation for being expensive, but Tromsø Lodge & Camping proves that you don’t have to spend a fortune to see the Northern Lights.

A range of accommodation is offered, including traditional, cosy log cabins, which make it ideal for couples or groups of friends travelling together.

Plus, it is located outside of the busiest part of the city, so on a clear night, you can see the Northern Lights from right outside the door to your cabin; something that city centre hotels can’t offer you.

Plus, after a day of exploring the nearby fjords or trying out other Arctic activities, there’s nothing better than returning to a cosy cabin at the end of the day to watch the Northern Lights.

5. Coal Miners’ Cabins – Longyearbyen, Norway

Rooms from £77 per night

If you want to experience the true Arctic without breaking the bank, then pay a visit to Coal Miners’ Cabins in Longyearbyen.

Longyearbyen is the world’s northernmost town, roughly 1,300km north of the Arctic Circle, and is found on the Norwegian archipelago of Svalbard.

Originally built as accommodation for Svalbard’s coal miners – hence the name – the building has since been converted into a two-storey hotel, with basic but comfortable rooms, ideal for visiting on a budget.

Svalbard can be expensive to reach, so saving on accommodation is a bonus if you’re travelling for the Northern Lights.

Because of its geographical location, Longyearbyen also experiences the polar night, where, from mid-November to February, the region is plunged into total darkness, making viewing the Northern Lights just about as impressive as it gets. The dancing greens, blues and purples of the aurora borealis being the only form of natural light is truly something remarkable.

Coal Miners’ Cabins is also around a 20-30 minute walk from the town centre, so this gives you an even better chance of seeing the Northern Lights without any light pollution.

6. Scandic Rovaniemi City – Rovaniemi, Finland

Rooms from £60 per night

For travellers who prefer a standard hotel over a cabin or a hostel, Scandic Rovaniemi City in Finnish Lapland is a great choice.

Rovaniemi is one of the most popular destinations in Finnish Lapland for seeing the Northern Lights, and Scandic Rovaniemi City is one of the best budget hotels for your visit.

It is also centrally located, so you can walk to most destinations and save money on taxis and other transport. Plus, there are a multitude of Northern Lights excursions to book which take you out of the city for less light pollution, although it is still entirely possible to see them from the city itself.

For a comfortable, sensible, and convenient option, few places in Rovaniemi are better than Scandic City Rovaniemi. 

7. Kyrön Loma – Raattama, Finland

Rooms from £86 per night

With accommodation centred around cabins, Kyrön Loma is an excellent option for visitors who want to connect with the nature of Finnish Lapland.

Surrounded by forests, fells and the spectacular landscapes of the Pallas-Yllästunturi National Park, this is a superb destination for experiencing the Northern Lights.

Given that the main light pollution comes from the resort itself, the almost complete darkness in the winter months makes seeing the Northern Lights highly likely, when there are clear enough weather conditions.

With the stunning surroundings, including frozen lakes, snow-covered trees and more, this is a genuine winter wonderland, where you have the advantage of excellent viewing conditions and a cosy cabin and even a sauna (this is Finland, after all) to come back to after a chilly night spotting the aurora borealis.