The Retreat at Blue Lagoon

Location: Reykjavik & Western Iceland | Iceland

Price guide: $$$$$ $350-$500 per person per night

The Retreat is a one-of-a-kind boutique hotel in Iceland’s Reykjanes Peninsula, overlooking the Blue Lagoon. The hotel offers unrivalled access to the lagoon – one of its suites even opens directly onto the water – and promises a luxurious stay with a chic Scandi design using natural materials which reflect the volcanic landscapes outside. Traditional Icelandic fare is on offer at the restaurant, while a top-class spa offers a range of treatments which make the most of the lagoon’s mineral-rich waters.
Perfect forA unique luxury stay right on the shores of the Blue Lagoon.
In the knowThe Reykjanes Peninsula owes its alien landscapes to its position on the Mid-Atlantic Ridge, a volcanic region where the Eurasian and North American volcanic plates meet.

Recommended for...

  • Setting & Views
  • Spa & Wellness
  • Chic Design
  • Seriously special

Hotel Overview

Sense of Place

In a prime position overlooking Iceland’s most famous attraction, the Blue Lagoon, the Retreat is in the heart of the Reykjanes Peninsula, surrounded as far as the eye can see by otherworldly lava fields carved through with deep valleys and dotted with craters and geothermal pools.

Rooms at The Retreat at Blue Lagoon

The most remarkable thing about The Retreat’s suites is the view, with each of them looking out through huge floor-to-ceiling windows over the volcanic landscapes and geothermal pools of the Blue Lagoon itself. The Moss Suites and Lava Suites are named for the black rocks outside, carpeted with greenery, while the Lagoon View Suites offer great views over the water from a private balcony. The Lagoon Suite, meanwhile, promises exclusive access into the lagoon itself – an unbeatable way to experience the waters.

The suites’ interiors are pure Scandi chic, with pine furniture, stone floors mirroring the rocky landscapes and stylish chairs in which you can relax and take in the premium views from your window.

Food & Drink

The green-matted rocks which lend the Moss restaurant its name may look rather barren, but the menu showcases the rich bounty of the Reykjanes Peninsula’s fertile farmland, with a range of traditional Icelandic dishes based on local, seasonal ingredients. Fresh seafood from the nearby coast also features heavily, and the food is accompanied by a range of high-quality wines from the restaurant’s cellar, carved from the volcanic rock beneath the hotel.

For pre-dinner hors d’oeuvres and evening cocktails, head to The Lounge, a cosy space overlooking the lagoon. Healthy light meals are on offer at The Spa restaurant.


As you might expect, the hotel’s spa makes full use of its unique position, offering therapies based on the natural mineral-rich waters of the Blue Lagoon. A range of massages, wraps and other treatments are on offer, but for the ultimate spa experience try the Blue Lagoon Ritual: a three-stage body wrap incorporating silica, mineral salts and algae from the lagoon.

Activities at The Retreat at Blue Lagoon

Clearly, bathing in the restorative waters of the Blue Lagoon is high on the agenda of activities here, but it’s far from the only thing to do. The lunar landscapes of the Reykjanes Peninsula offer endless opportunities for hiking, caving and horse riding, while seal and whale-watching tours are popular activities on the water. Birdwatchers will find plenty to keep them occupied here, too.

During the winter, the dark, quiet skies of this region make it a great place to spot the Northern Lights – an activity which occupies top spot on many a bucket list - and thanks to the hotel's wake-up call service, you won't miss them when they appear! You can also enjoy a 'Midnight Floating' experience where you'll get exclusive after-hours access to the lagoon to float on the geothermal waters and watch the starry skies above - and if you're lucky, witness the Northern Lights too.

Best time to go

Best time to travel

Good time to travel (but some limitations)

Travel is possible (but it’s not the best time)

Travel is not recommended

  • Jan
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Best time to go

Hotel location

The Retreat at Blue Lagoon is around 20 minutes’ drive from Reykjavik's Keflavik International Airport.

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