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Hotels · Iceland

Retreat at Blue Lagoon

  • Price$1200-2000 — $1500-3000
  • CategoryLuxury
  • Rating★ 4.9

The Retreat at Blue Lagoon stands as one of Iceland's most exclusive luxury hotel experiences, embedded within the UNESCO-nominated lava field landscape at Norðurljósavegur 11 in Grindavík on the Reykjanes Peninsula, approximately 50 kilometres southwest of Reykjavik and 20 kilometres from Keflavik International Airport.

Ultra-exclusive luxury hotel integrated into 800-year-old lava flows at the Blue Lagoon. Features private lagoon access, underground spa, Michelin-quality dining, and suites carved into lava rock. The ultimate Icelandic wellness experience combining nature and luxury.

The Retreat at Blue Lagoon stands as one of Iceland's most exclusive luxury hotel experiences, embedded within the UNESCO-nominated lava field landscape at Norðurljósavegur 11 in Grindavík on the Reykjanes Peninsula, approximately 50 kilometres southwest of Reykjavik and 20 kilometres from Keflavik International Airport. The property's singular design concept — suites, lava cave passages, and connecting corridors bored directly into 800-year-old basalt lava flows — creates a sense of complete immersion in Iceland's volcanic geology while maintaining every amenity expected at this price tier.

The hotel accommodates guests in 62 suites and lava rooms, each finished in materials drawn from the surrounding landscape: natural stone, pale birchwood, volcanic ash tones, and floor-to-ceiling glazing framing views of the milky-blue geothermal lagoon and raw Reykjanes lava field. Rooms are exceptionally spacious by Icelandic standards and feature private bathrooms with geothermal water elements, premium bedding, and dedicated butler service.

The property's crown jewel is its underground spa and the exclusive In-Retreat lagoon — a private geothermal pool available solely to hotel guests, entirely separate from the public Blue Lagoon facility. Treatments at the Retreat Spa incorporate Blue Lagoon's signature silica mud and mineral-rich geothermal seawater. Additional wellness facilities include a steam cave, sauna, and relaxation chambers carved into the lava rock.

Dining centres on MOSS Restaurant, whose tasting menu of seasonal Icelandic ingredients has attracted significant international culinary attention. A lava-cave wine cellar, the Lava Bar, and private dining options round out a gastronomic offering that positions the Retreat as a self-contained destination independent of any wider Reykjavik itinerary.

The Retreat's exclusivity-focused concept makes it particularly suited to couples celebrating milestones, high-end wellness retreats, and travellers whose primary goal is total sensory immersion in Iceland's volcanic landscape. Its proximity to Keflavik Airport — just 20 km — also makes it an ideal first or last night on an Iceland itinerary.

Amenities

  • private Blue Lagoon
  • underground spa
  • fine dining
  • spa treatments
  • lava rock suites
  • exclusive access

Location

Norðurljósavegur 11, 240 Grindavík

63.8825, -22.4463 View on map

Highlights

  • Private In-Retreat geothermal lagoon exclusive to hotel guests, separate from the public Blue Lagoon
  • 62 suites and lava rooms embedded in 800-year-old basalt lava flows on the Reykjanes Peninsula
  • MOSS Restaurant serving an internationally recognised Nordic tasting menu of Icelandic seasonal produce
  • Underground spa with silica mud treatments, steam cave, and geothermal water therapies
  • Just 20 km from Keflavik Airport — ideal as a first or final night on an Iceland itinerary

Tips for visiting

  • Book rooms and spa treatments at least three to six months in advance — the Retreat sells out well ahead, particularly for summer and the Northern Lights season.
  • The property includes access to the main Blue Lagoon facility; schedule visits for early morning before 10:00 to avoid peak crowds.
  • Package rates bundling spa treatments with accommodation offer better value than booking each separately.
  • The MOSS Restaurant tasting menu requires an advance reservation; it fills quickly and is not guaranteed for walk-in guests.
  • Volcanic eruptions on the Reykjanes Peninsula can occasionally affect access roads; check vedur.is (Meteorological Office of Iceland) before travel.

Accessibility

The Retreat at Blue Lagoon has been designed with accessibility considerations, and suites with adapted bathroom fittings and step-free access routes through the lava corridor network are available. Guests with specific mobility requirements should contact the reservations team in advance to arrange appropriate suite allocation.

Frequently asked questions

What is the difference between the Retreat and the public Blue Lagoon?

The Retreat Hotel guests have exclusive access to the In-Retreat private geothermal lagoon in addition to the main public Blue Lagoon, which is a large geothermal spa open to day visitors. The private lagoon is quieter and accessible only to hotel guests.

Is the Retreat at Blue Lagoon adults-only?

The Retreat is designed as an exclusive wellness retreat and is not well-suited to young children. The spa facilities and dining format are oriented toward adult guests seeking a tranquil experience.

How far is the Retreat from Reykjavik city centre?

The property is approximately 50 km from central Reykjavik, around a 45–50 minute drive via the Reykjanes expressway. Transfer services from Keflavik Airport, only 20 km away, are available.

Are meals included in the room rate?

Room rates do not typically include dining. MOSS Restaurant and the Lava Bar operate separately; some packages include breakfast or dining credits. Check current package options when booking.