If you’re looking for the best luxury hotel in Iceland, look no further. The Retreat at Blue Lagoon is in a world of its own (literally), and is one of my favourite hotel stays ever. I’ve been fortunate enough to stay here a few times now and can honestly confirm there is nowhere quite like it. Whether its for a honeymoon, a girls’ trip or a splash of luxury during an Iceland adventure, The Retreat is sure to deliver an exceptional stay.
Few hotels can boast a setting quite like The Retreat. Set within an 800-year old lava field and surrounded by the milky, geothermal waters of the Blue Lagoon. Even fewer hotels can bring together an exceptional setting, with an incredible experience. From swimming in its private lagoon under the stars, to enjoying what is possibly the most comfortable bed ever.
It’s not a cheap stay – in fact, it’s around £1,300 a night. This is based on two people sharing a double room, and includes spa access, breakfast, afternoon tea etc. Check the latest rates here.
This review will cover everything you need to know about The Retreat at Blue Lagoon, so read on to find out more!
Overview
Location
Set within the rocky lava fields of the Reykjanes Peninsula, The Retreat at Blue Lagoon is adjacent to the world famous attraction, and Wonder of the World, the Blue Lagoon. Located around 45 minutes from Iceland’s capital city, Reykjavik, and just 20 minutes or so from the airport, the entire Blue Lagoon complex is surrounded by volcanic landscape.
In 1992, the Blue Lagoon was opened to provide a geothermal bathing location for locals. But after some time, they realised that the silica-rich waters were incredibly soothing for their skin. This led to Silica Hotel opening in 2005, which in part serves as a medical facility for those suffering with psoriasis.
In 2018, The Retreat at Blue Lagoon opened, as the first ultra-luxury hotel in Iceland, complete with an out-of-this-world subterranean spa, Michelin-starred dining and a private lagoon.
Review of The Retreat at Blue Lagoon
First impressions
You know you’re coming up to the Blue Lagoon as the milky geothermal waters start emerging between the black volcanic rock, which is always super exciting. In my last few visits, there has been plenty of volcanic action in between and it’s been quite incredible to see the flow of lava go straight over the roads. This has meant new roads to access the Blue Lagoon have been built several times over now (and a full new car park following a 2024 eruption!)
Each time I’ve stayed at The Retreat, I’ve availed of their transfer service from the airport, which is a black Mercedes sprinter van. Upon arriving at the Blue Lagoon, the driver swings down a gated side road, where a wall of lava surrounds you on both sides. And then suddenly, the very low-rise building appears. It’s nothing too remarkable outside – in fact, it’s meant to be blend into its surroundings.
A huge wooden swing door opens, and out appears a doorman, quick to welcome us and take our bags. We’re welcomed in by some of the host staff, clad in matching navy polo necks and grey suit trousers. Check in is a very relaxed affair. It is completed from the comfortable sofas, with a complimentary drink of choice (white wine for me!)
On the way to your room, the host gives a brief tour and explanation of the property.
Our room
There is always such a wow factor when stepping into one of The Retreat’s 60 incredible suites. Floor-to-ceiling windows greet you, plus your own private terrace. There’s simply nothing on the horizon except an endless stretch of black lava rock. It’s quite incredible.
On your private terrace are two well-structured bean bag seats, but just inside is a huge standalone bathtub. This is a beautiful place to spend hours whilst gazing at the view.
I’ve stayed in both a Lava Junior View Suite and a Moss Junior Suite. They’re the same in terms of amenities and size, just the Moss Junior Suites are located on the first floor. And although the Lava Junior Suite is at water-level, the water isn’t actually heated and it’s really cold. Note that there is no private access from these suites to swim!
However, some of the other categories of suites do offer access to your own private lagoon – and you pay for this amazing privilege!
Between the Moss Junior and Lava Junior, I have a slight preference to be on the ground floor so I’d pick Lava Junior.
The rooms are wonderful – so well designed and thought-out. The huge grand king size bed takes centre spot in the room like an island, and the back wall of the room is occupied by a huge wardrobe. This is also where the mini fridge and snack cupboard is located, which is included and replenished throughout your stay.
The bathroom is separated by function, with a huge powerful walk-in rain shower. You’ll also find a selection of Blue Lagoon skincare products to keep, as well as the usual hair dryer, hair straighteners and bathrobe and slippers etc.
I find the room to be so soothing and magical to spend time in, I have to pull myself away to make the most of the rest of the hotel!
Facilities at the hotel
Communal areas
The main communal area is the large central living room area. It serves as both the check-in area, and also where breakfast and afternoon tea is served. This might sound really strange but it just works. I’ve also only ever seen it busy at 10-11am as people come through to checkout. Otherwise, the space is wonderfully serene. Its back wall has a number of fireplaces and cosy seats, and the lower seating area is located by the water’s edge.
Adjacent to this space is the small retail space where you can buy skincare products and other top quality items from The Retreat. And then next to this is a small library, with is complete with board games and an honesty bar. It’s a very calm and soothing space, and also has a side door to an outside terrace for smoking.
Upstairs is a gym and a yoga room. Yoga is included daily, but it’s first-come-first-served so don’t be late.
Retreat Lagoon
One of my favourite things about this hotel is without a doubt, the private Retreat Lagoon. You can access it through the spa (of which it forms a part), or you can also access it through a door by the library once the spa has closed (at 8pm). There’s a short wooden boardwalk to the entry area, and from here you can wade through the private lagoon’s waters until 10pm. Absolutely magic and the silence in the lower sections of the lagoon is incredible.
At the upper tier of Retreat Lagoon is a hatch where you can ring the bell to order drinks. They have a range of smoothies, alcoholic beverages and coffees to opt for, which you can enjoy whilst luxuriating in the lagoon.
The Retreat Spa
This spa experience is like nothing I’ve been to before. It’s more of a journey, taking you through different spaces and experiences, culminating with the Blue Lagoon Ritual. This is a multi-step sanctuary, which first begins with a sauna session to open the pores. From here, you enjoy the trinity of geothermal scrubs and masks in a unique space unlike anywhere I’ve been before. It is the ultimate cleanse and detox for your skin.
There is a variety of indoor and outdoor spaces for rejuvenation, including an awesome ice plunge. And there are several access points into the Retreat Lagoon, where you can re-submerge into its milky warmth.
Just past the Blue Lagoon Ritual space is also a slip door which takes you to the main public Blue Lagoon. You can then just use your Retreat wristband to re-gain access into the Spa. This is also where the in-water massages and float therapy treatments take place, which I highly recommend adding into your stay at The Retreat.
To give you an idea of prices, a 30 minute in-water massage is ISK 20,900/USD 164/£125 and 60 minutes is ISK 28,900/USD 227/£173.
Solo float therapy is a 45 minute experience and is ISK 25,900/USD 203/£155. Find out more on all the options here.
Food and Drink
It would be amiss to not draw attention to the incredible food at The Retreat.
Starting the day off strong is a fantastic breakfast spread served from 7am until 11am. It’s a beautiful buffet, complimented with an a la carte menu. Make sure to sample all the delicious freshly squeezed juices, as well as shots of cod liver oil and ginger.
Lunch is more typically served in the Spa Restaurant. Or you could head into Lava Restaurant, which is part of the main Blue Lagoon. Both serve up excellent local dishes that are just so fresh and light.
Included in the nightly rate is also afternoon tea. This is a delightful tiered platter of Icelandic sweet treats, served with coffee, tea or champagne. You can enjoy this in your bathrobe, and I highly recommend tearing yourself away from the Spa or Lagoon each afternoon for this.
The real cherry on top to a stay at The Retreat at Blue Lagoon is to dine at Moss, which is its incredible Michelin-starred restaurant. Note it’s only open Wednesday to Sunday, so it’s really worth organising your stay to incorporate a meal at Moss. Its head chef Aggi Sverrisson trained under Raymond Blanc, and used to be chef patron at Texture in London. This Nordic restaurant held its Michelin star for 10 years, before Aggi moved back to Iceland.
He has developed one of the most incredible menus, and experiences, and I couldn’t recommend the full Moss experience more. You can opt for a regular or vegan tasting menu (ISK 34,900/£209). But I would also highly recommend adding on the classic wine pairing (ISK 29,900/£179). It will be, without doubt, one of the best meals of your life!
If you stay at The Retreat for a couple of nights, naturally you wouldn’t likely dine at Moss more than once. But Lava Restaurant again is a great option.
Last but not least, there’s an incredible subterranean wine cellar built into centuries-old lava. You can do a wine tasting in here, which I highly recommend. The space is incredible and the wine selection expansive.
The staff and service
A stay at The Retreat is without doubt, one of the best travel experiences I’ve ever had. The hosts are on top of everything, without being fussy or annoyingly attentive. It’s the most understated luxury. Before long, The Retreat begins to feel like your home as you wander around in your bathrobe.
You can also ask for a Northern Lights wake-up call, so if the hotel team spot them, they’ll call you and you can run up to the roof terrace. Amazing!
Other useful tips
- Water temperature: The milky waters of the lagoon are around 98-104°F (37-40°C). If you swim near certain areas (especially near the vents), you’ll definitely find hot patches too.
- Depth: The Retreat Lagoon is around 4ft (1.2m) deep throughout, so most people can walk around comfortably.
- Kids: The minimum age to visit the Retreat Spa or Retreat Lagoon is 12 years old. All ages are welcome at the Retreat Hotel. However families with children aged 8 or younger are not permitted to stay in the suites on the ground level because of their direct water access.
- Visiting pregnant: It is considered safe to bathe in the Blue Lagoon’s waters if you’re pregnant as the temperature is like a warm bath, but if you’re unsure, you should consult your doctor.
- Hair: Keep your hair out of the water, if you can. The silica content in the water will be dry out and damage hair. They also provide tons of BL conditioner so you can lather your hair in that too ahead of entering the water. But the silica water is not for swimming in or for submerging. It’s just for bathing! After my first visit to Blue Lagoon (where I did allow my hair to get wet), I rescued it with an overnight coconut oil mask and it was all good again.
Review of The Retreat at Blue Lagoon
So there’s my full review of what I would say is the very best luxury hotel in Iceland. A stay quite unlike anything else, and well worth the splurge. Check the latest rates for a stay here.
Hopefully that’s covered everything you need to know when deciding on a stay at The Retreat. I highly recommend and think it should be included on any trip to Iceland.
If everything sounded amazing, but just a little too expensive, then make sure to check out the sister hotel, Silica. Whilst not as opulent, it provides private lagoon access and is still a lovely stay. Rates are more around £600 per night.
For other useful Iceland guides, make sure to check out:
- a complete guide to visiting the Blue Lagoon
- a guide to visiting the Sky Lagoon
- my guide to hiring a car in Iceland here
- as well as the best day trips from Reykjavík here
Feel free to ask any further questions below if there’s something I haven’t covered.
Disclaimer: My visits to The Retreat at Blue Lagoon Iceland are a mixture of independent visits paid for by myself, and some have been hosted visits. However, as always, my reviews are entirely honest and my own.
