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
  • Feb
  • Mar
  • Apr
  • May
  • Jun
  • Jul
  • Aug
  • Sep
  • Oct
  • Nov
  • Dec
Best time to go

Hotel location

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

Stay at The Retreat at Blue Lagoon on these trips

More places to stay in Reykjavik & Western Iceland


call us on 020 7337 9010 to start planning your perfect trip

Make an enquiry

© 2022 Exsus Travel. Experts in luxury tailor-made holidays.

Exsus Travel Limited t/a Exsus Travel. Registered in England and Wales at this address: 1 Burwood Place, London, W2 2UT. Company No. 3385363. VAT No. 719-221840.

Book with confidence.
All the flights and flight-inclusive holidays on this website are financially protected by the ATOL scheme. When you pay you will be supplied with an ATOL Certificate. Please ask for it and check to ensure that everything you booked (flights, hotels and other services) is listed on it. Please see our booking conditions for further information or for more information about financial protection and the ATOL Certificate go to:
We are a member of ABTA (ABTA No. Y6561) which means you have the benefit of ABTA’s assistance and Code of Conduct. We provide full financial protection for your money.
International Passenger Protection (IPP)
In accordance with the Passenger protection policy for insolvency cover in respect of the Package Travel & Linked Travel Regulations 2018, all passengers booking with Exsus Travel are fully protected for the initial deposit and subsequently the balance of all monies paid to us, including repatriation costs, arising from cancellation or curtailment of your travel arrangements due to the insolvency of Exsus Travel. There is no requirement for financial protection of day trips, and none is provided. Your booking is insured by IPP Ltd and its panel of insurers. This insurance is only valid for passengers who book and pay directly with Exsus Travel. If you have booked and/or paid direct to a Travel Agent for a holiday with Exsus Travel please request proof of how the booking is secured as this will not be covered by IPP Ltd in this instance.
This insurance has been arranged by International Passenger Protection Limited and underwritten by Liberty Mutual Insurance Europe SE. For further information please go to
Claims procedure: you must notify IPP as soon as practically possible giving full details of what has happened quoting the name of your Travel Operator to: IPP Claims at Cunningham Lindsey, Oakleigh House, 14-15 Park Place, Cardiff,  CF10 3DQ, United Kingdom. Tel: +44 (0)345 266 1872.
Email: or online at