Possibly as close as you can come to sleeping in an Icelandic lava field while wrapped in extreme luxury, The Retreat Hotel at Blue Lagoon redefines wellness travel. Positioned beside the iconic Blue Lagoon, the hotel offers private soaking lagoons that draw the same restorative geothermal waters as the original pools, flowing in sinuous channels through the lava fields and winding around serene suites.
I recently had the pleasure of staying overnight at the new property. The hotel is especially meaningful to me because I have watched the Blue Lagoon evolve from its early days as a large pool with austere changing rooms into a full-fledged wellness destination with restaurants, spa facilities, a research center and boutique accommodation. The Retreat’s elevated level of comfort feels like a natural, but extraordinary, next step in that progression.
Retreat Lagoon © Blue Lagoon Iceland
The spa is at the heart of the experience. The Blue Lagoon’s milky-blue geothermal waters, rich in silica, algae and minerals, have been researched since the early 1990s for their restorative qualities. These waters originate from volcanic aquifers more than 6,500 feet below the surface, their distinctive mineral profile produced by the intense, heated interaction of seawater and freshwater underground.
Guests at The Retreat Hotel, along with a limited number of day visitors, enjoy access to private pools and exceptional bathing areas. Visitors may book personalized therapies and spa treatments or follow the self-guided Blue Lagoon Ritual. The ritual takes place across spacious, stone-floored rooms where guests begin by coating themselves with layers of silica mud.
After the silica dries and is rinsed away, the next step is to scoop a gel-like algae blend from a central reservoir and apply it head to toe. Once the algae has dried and is washed off, the ritual concludes with a final application of mineral-rich products that nourish the skin.
Before or after the ritual, soak in the glowing turquoise pools and enjoy the hotel’s subterranean relaxation spaces: a lava-rock steam chamber, sauna, natural lava spring and a lounge with hanging chairs that overlook the water. There’s also a cozy, firelit room with deep daybeds for sinking into tranquility. The hotel includes a dedicated yoga studio offering daily classes to complement the spa experience.
Retreat Lounge © Blue Lagoon Iceland
Conceived by Blue Lagoon founder and CEO Grímur Sæmundsen, MD, the two-story hotel comprises 62 spacious suites finished in a calm palette inspired by the region’s green moss, blue water and gray skies. Guests arrive into a broad lobby and reception area that maximizes views with a wall of floor-to-ceiling glass overlooking the lagoon river. The same space hosts a breakfast buffet and a tasteful display of vintage Icelandic ceramics.
Architect Sigríður Sigþórsdóttir, a founding partner of Basalt Architects, led the design. She spent time camping in the surrounding lava fields to identify the most fitting site for the hotel, resulting in a structure that integrates organically into the landscape. Sigþórsdóttir and her team incorporated striking lava formations into the building’s architectural features, allowing the volcanic terrain to shape the guest experience.
Inside the suites, restrained Nordic elegance prevails: stone and wood elements, careful use of natural light and uncluttered lines. Suites are intentionally television-free, encouraging guests to unwind and focus on the environment. Glass walls open onto terraces where quiet blue water flows past as it makes its way toward the spa, framed by jagged lava formations. Spa bathrooms are stocked with Blue Lagoon body-care products formulated to complement the geothermal water’s therapeutic components. Before sleep, wrap yourself in an Icelandic wool throw and settle onto your terrace—if the night is clear, you may catch the Northern Lights sweeping across the wide, northern sky.
Retreat, Spa, Restaurant © Blue Lagoon Iceland