The Retreat Hotel at The Blue Lagoon Iceland – Luxury Stay & Review
I’m watching the third series of The Reluctant Traveller on Apple TV at the moment, having loved the first series with Eugene Levy as a very charismatic but reluctant presenter for a travel show. There were some iconic destinations there, and it was great to see the Arctic Treehouse Hotel featured in Lapland, somewhere we had already booked. The second series (Europe) I found a little less dramatic, and I love the concept for the current series which is all places that are on Eugene’s Bucket List. First stop, somewhere I have also been but not at that time of year, Oaxaca in Mexico for the Day of the Dead celebrations; then second episode another location I’ve been to, Vienna in Austria.
Sticking with that bucket list concept, I’d love to create mine and I know for sure that two places I had to miss out on from my 50th Round the World birthday celebration, New Zealand and the South Pacific (The Brando and Laucala included) would certainly be two of my top 10. Another destination that had been on my list, but to which I was lucky enough to visit for the first time last year, was Iceland. Realising that not only was there the Blue Lagoon and the nearby Silica Hotel, once I realised there was the premium spa option of The Retreat, at The Blue Lagoon, that was firmly on my go to list for Iceland, and I had the most amazing day spa visit which you can read all about here.
One of my takeaways from that day visit was that I had to go back and stay in The Retreat Hotel itself, so when I realised that Icelandair were starting a direct service from Edinburgh (to Reykjavik) it made the perfect reason to tie both together for a return trip. You can read all about that full itinerary here.
The Retreat Blue Lagoon Iceland – Hotel Review
Luxury suites, private lagoons, and world-class spa rituals in Iceland’s most iconic geothermal wonder
Set amidst Iceland’s dramatic lava fields and steaming geothermal waters, The Retreat Hotel at The Blue Lagoon is one of the world’s most iconic spa resorts. Offering suites carved into volcanic rock, Michelin-starred dining, and access to both private lagoon areas and the famed Blue Lagoon itself, this is a true once-in-a-lifetime wellness escape.
I knew from just having visited for the day, as good as it was, I needed to go back and experience not only a longer time, but also some of the wider facilities available to hotel residents. Read on to find out all about my stay, and whether I found it as good as I had expected it to be, or better.
Book The Retreat Hotel at The Blue Lagoon with Fora and The Private Traveller
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If you want to visit the Blue Lagoon, contact me to help you with bookings and if you need help deciding between the four star Silica Hotel, or the five star Retreat. Both are great, but different, and would be an ideal addition to a wider Iceland trip.
Fast Facts for The Retreat Hotel Blue Lagoon Iceland
| Detail | Info |
|---|---|
| Hotel | The Retreat Hotel, Blue Lagoon Iceland |
| Address | Norðurljósavegur 9, 240 Grindavík, Iceland |
| Website | bluelagoon.com |
| @retreat.bluelagoon | |
| TripAdvisor | Ranked #1 Hotel in Grindavík |
| Rooms | 62 suites, all with lagoon views |
| Check-in / Check-out | From 3:00 PM / Until 11:00 AM |
| Nearest Airport | Keflavík International Airport (20 mins by car) |
| Visited | September 2025 |
Hotel Accommodation: The Retreat Hotel
A design-led sanctuary blending natural lava landscapes with ultra-modern comfort.
There are three types of (entry level) junior suites, all of which are the same layout and with similar facilities, albeit in different parts of the two-wing hotel, and on either the ground or first floor (in Iceland, these were termed 1st and 2nd floors). The premium suite is the Moss Suite which is half as big again with a separate living space, then the Lagoon and Blue Lagoon Suites which are the jewels in the crown, both with their own private lagoon access, and the top suite comes with a whole range of extras like butler service, a personal bar including soft drinks, beer, wine, & Champagne, and a guaranteed late check out of 5pm.
Room and Suite Types
Lava View Junior Suites - upper level
Moss Junior Suites - lower level
Lagoon View Junior Suites
Moss Suite
Lagoon Suite (direct private lagoon access)
The Blue Lagoon Suite (direct private lagoon access, steam room & sauna)
“The Retreat...
Unwind the clock of modern life. Unlock the door to a wonder of the world.”
Facilities & Service at The Retreat Hotel
Exclusive lagoon access and world-class service that redefine the Icelandic spa experience.
The hotel is almost a destination in itself, with access to both the lagoons at The Retreat (for exclusivity) but also the walk through option of accessing the main Blue Lagoon at any time during your stay. This really is exceptional service with access to Iceland’s most famous natural wonder.
Here’s a closer look at the hotel’s standout facilities and services, along with my personal take on each.
My Moss Junior Suite 125
There are 62 suites in all, located across two floors of a modern building, in two wings. Mine was on the ground floor, accessed by a wristband that not only gave you access to your suite but charging ability in any of the Blue Lagoon’s restaurants or outlets.
At 40 sq. mt. this was a spacious suite and beautifully yet functionally designed. On entry was the main bedroom area, lots of storage on the back wall with a central large bed and a seating area in front facing the open balcony, through floor to ceiling windows. The other side of the suite was modular with a private WC at the back, adjacent to an open-plan single sink and vanity area, with a walk through rainshower. In one corner was a freestanding tub, with a whole array of Blue Lagoon branded bath products.
Levels of Comfort
The bed was super comfortable and such a relaxing space overall - I was mesmerised by the view from the balcony over the moss and lava fields, and the hotel itself was surrounded by a (blue) lagoon. The suite was serviced morning and night, and a nice touch at evening turndown (as well as restoring the suite back to perfection) I was left with a small box of handmade chocolates and more mineral water.
There was lots of storage space along the back wall, all discretely hidden behind wood panels as well as a refreshment centre. There was a coffee and kettle tray with a choice of teas and coffees, complementary snacks like Doritos and popcorn, as well as a pull out drawer of soft drinks, beer and mineral water.
On arrival there was a large bathrobe for using to go to the lagoons or spa, or indeed for taking the afternoon tea in the lounge. There were also branded sliders for the spa, with the robe being replaced at turndown.
Bathroom
There was the freestanding tub, walk through rain shower, and exclusive Blue Lagoon Ritual skincare amenities - shampoo, conditioner, shower gel, bath salts, and body lotion. Beautifully clean and I loved the design combination of the dark slate tiled floors and walls, adjustable lighting yet softened by the natural wood (walnut?) doors and drawers accents.
There was also a complimentary gift set of Blue Lagoon skincare items to take away. The rain shower, with three settings that could either be used on their own or combined for a multi-sensory bathing experience, was excellent.
Breakfast
Breakfast was served in the elegant lobby area of the Retreat Hotel, a mix of both buffet and a la carte options, both featuring Icelandic specialities and fresh local produce. If you’re planning a day in the spa or lagoon, it’s perfectly acceptable to eat breakfast in your robe, overlooking the stunning volcanic landscape.
The bar area of the lobby was filled with everything from fruits and yoghurt options, to meats, cheeses and salmon, and a whole array of pastries and bakery items, including pancakes. There was a separate station with a coffee machine and fresh juices, with the a la carte menu of eggs (over 7 options), avocado toast, vegan meatballs, and a big choice of sides too from bacon to sliced avocado, and of course your usual breakfast items like tomato, beans, etc.
Restaurants & Bars at The Retreat Hotel
A culinary journey showcasing Icelandic flavours in both refined and relaxed settings.
The last time I visited I only tried the Spa Restaurant, which was excellent, having lunch overlooking the private Retreat lagoon.
Moss Restaurant
Michelin-starred cuisine highlighting Icelandic ingredients - the only options seemed to be two tasting menus, either with or without wine pairings.
Lava Bar & Restaurant
Cocktails and wines in a relaxed setting with panoramic lagoon views. This was where I enjoyed dinner and a cocktail - great food and good service. There are great tables around the outside of the restaurant with views over the lagoon - I wasn’t given one (they told me they were holding them for larger parties) but I would make a point (if I’d known) to request one of these in advance. It’s a big restaurant though, two levels and definitely the option if you want something more formal than the Blue Café, but not as formal (or having to have a tasting menu) of the Moss Restaurant.
There’s a choice of menus with either a la carte, or multi-course options. I just went for two starters actually as I filled myself up too much on the delicious choice of sourdough breads which came with whipped Icelandic butter caked in sea salt. There was ample choice for vegetarians or vegans, including a four-course vegan set menu.
Blue Cafe
I didn’t have anything here, but this is part of the main Blue Lagoon entrance (also a skincare products shop there too) - it’s a self-service/takeaway outlet, overlooking the main lagoon, adjacent to the Lava Restaurant.
Spa Restaurant
Food served throughout the day for spa guests, and perfectly acceptable to sit there in your robe and slippers. There was an excellent choice of food and drinks, you could be as healthy or as indulgent as you like, having a glass (or two) of champagne with lunch or a snack during your spa day.
There was also a hatch from the Spa restaurant out into the lagoon, so if you’re relaxing in the mineral waters, just press the button for service and you will get your cold beer or champagne served to you right in the lagoon. This is where the chargeable wristbands come in very handy - they also work in the main bar of the Blue Lagoon too.
Icelandic Coffee Time
Every afternoon an afternoon tea is served in the lobby lounge for guests - there are sandwiches/savouries (and they accommodated me perfectly with a vegetarian option), cake and scones to go with your choice of tea or coffee.
Fitness, Spa & Wellness
The Retreat Spa at Blue Lagoon Iceland
The Retreat Spa is world-renowned, offering subterranean treatment rooms carved into volcanic rock. Facilities include:
Private Retreat Lagoon
Blue Lagoon Ritual (three-step lava, silica, and algae spa treatment)
Steam cave & sauna with lagoon views
Exclusive in-water massage therapies
You can find my full review from my last (day) visit here that explains more about the day facilities and the ritual, but as well as all of the spa facilities in both the Retreat Spa, you do of course have unlimited access to all of the main Blue Lagoons too. There is also a very well equipped fitness room, and yoga room, upstairs in the Retreat Hotel.
The Retreat Spa is so relaxing and spacious - changing facilities are amazing (your own private suite) with a whole choice of thermal facilities as well the 3-step ritual, which I did twice. First off you’re best either getting warm in either the panoramic sauna or the terrace steam cave, the scrubbing your skin with Minerals, The Blue Lagoon’s uniquely potent array of minerals have energizing effects on your mind and body—exfoliating your skin and stimulating your circulation. Next up, after cleansing your skin of the scrub in one of the rainshowers, you dry off and apply Silica, the Blue Lagoon’s iconic white mineral, which cleanses and strengthens your skin—giving you a fresh, pure, radiant appearance. Leaving this to dry off, you then shower again before taking the third step, the Algae Mask. Blue Lagoon algae is extraordinarily dynamic. It renews, nourishes, and moisturizes your skin— opening the door to an enduring, youthful glow. You apply it all over and again wait for this to dry on your skin, before taking one final rainshower. The very final step is where you’re given lip balm, and two different argan oils, one for face and neck, and another to moisturise your body.
The other thing which was new for me this time, having seen it last year, was an in-water massage. I wasn’t sure how this would work, especially with using the same argan oil, but it was excellent - what out for an upcoming Spa Review and I will explain all there - fabulous experience.
Design & Architecture
Minimalist Nordic design meets Iceland’s raw natural beauty.
Think floor-to-ceiling glass walls, lava-stone architecture, and interiors inspired by moss, minerals, and geothermal waters. I loved the mix of concrete walls, slate, glass, wood and complementary textiles. Everywhere was so perfectly clean and well organised, and pretty much from every window on both levels and throughout the whole building, you have the amazing landscape views.
The overall effect is both calming and dramatic, with the design never distracting from the surrounding lava fields and lagoon but instead framing them beautifully. I also appreciated how the interiors avoid feeling cold or stark – the use of warm lighting, tactile fabrics, and subtle details makes the whole space feel inviting. It’s modern and minimal, yes, but still with a real sense of comfort that complements the raw Icelandic setting rather than competing with it.
Pro Tip: Choosing Your Room
For the ultimate experience, book a Lagoon Suite with direct private access to the mineral-rich waters.
🛎️ When booking with The Private Traveller, I’ll help match you to the perfect suite—along with VIP perks, upgrades, and bespoke guidance throughout.
What about the Retreat Blue Lagoon location?
Secluded yet accessible.
Located just 25 minutes from Keflavík International Airport, the hotel is perfectly positioned for a first or last stop on an Iceland itinerary. Despite the proximity, it feels completely removed from the outside world. This trip I hired a car (from Avis) and it was such an easy experience, and a great way to get around the island, albeit I just drove from the Airport to the Blue Lagoon, then back to the Airport for an overnight stop.
The pick up was easy in the airport terminal, and I was directed for just a short walk across the car park to pick up my hire car. The agent explained where to drop off the car (also within a couple of minutes’ walk from the terminal, and also pointed out where to fill up the car with fuel before drop off. I don’t think I’ve ever had such a simple process, and it’s easy to take directions and drive around.
Things to Do at The Retreat Blue Lagoon
Wellness and adventure in Iceland.
You can do as much or as little as you like here - I can spend hours in a spa, especially here going between the two lagoons, but also enjoying all of the features of both. Since my last visit to the Blue Lagoon, they had upgraded their steam and sauna facilities, now on an island in the middle of the lagoon and on one side a swim-in steam cave. This was so good that you remain in the thermal waters while benefitting from the steam; on the other side was a panoramic sauna. As well as this there was also another steam cave, this not in the water.
In the Retreat, you have all the spa facilities too and the benefit of multiple seating and relaxation spaces - I could spend hours here.
Daily access to the Retreat Lagoon and Blue Lagoon
Icelandic spa rituals
Northern Lights viewing (seasonal)
Day trips to Reykjavík, Þingvellir National Park, and the Reykjanes Peninsula
Need to stay overnight at the Airport?
With an earlyish flight on my return, I opted to return the car the evening before and stay overnight at the airport hotel, the Aurora Hotel at Keflavik. While I won’t be publishing a full hotel review, and it won’t be featuring in my top 10 luxury hotels in the world, for the location it was a perfect stop and so convenient for the purpose.
Rooms were perfectly clean and comfortable, not cutting edge design and style, but had everything I needed and the room was ideal. There was a good en-suite shower room, which was modern and clean, well equipped and a great large walk-in shower. There’s an onsite restaurant and bar, as well as a separate breakfast room, which felt more like a repurposed conference room. Though limited options and self-service only, breakfast was decent, if not exceptional.
Highlights of my stay:
There were many reasons to love the Retreat Hotel, but these highlights capture what made it such an exceptional experience:
Such a good welcome - immediately seated and offered a glass of champagne, while completing a very quick check-in. My luggage and jacket was whisked off to my suite while I was then given a quick orientation tour.
Lovely staff throughout.
An incredible suite - beautifully designed and so comfortable; with those views!
The lagoon and spa - amazing, definitely one of the world’s natural wonders.
The design of the hotel - so much space and all so beautifully designed. Even including the Library (honour) bar with step out balcony onto the lagoon, and there was access out onto the roof from the upper level of the hotel. With so many windows out onto the surrounding landscape, the hotel had the wow factor everywhere, and that was before even getting to the spa itself.
Easy to get to from the airport, adjacent car park though I did seem to get the last space available.
Great food, and very nice having the inclusive Icelandic coffee time 4-5pm daily.
Very smooth check out, and seamlessly co-ordinated with my visit to the spa - before I had even walked to the spa through the outside walkway, my luggage had already been transported to my (day) changing suite in the spa.
The full size in-room Blue Lagoon skincare and toiletry items - as well as the samples to take away too.
If you want to shop, you have both a shop in The Retreat Hotel, as well as a Blue Lagoon Skincare shop in the main Blue Lagoon itself.
Areas for improvement:
I genuinely don’t think there is anything I could add here, other than (personal choice) that I should have stayed longer!
Would I Stay Here Again?
Absolutely - this was one of the most memorable hotel experiences I’ve ever had. Having now been for a day trip, as well as having stayed overnight, my only regret was not staying longer. While I think the perfect stay length here would be two nights, there is also no reason why you couldn’t stay longer to use The Retreat as a base for touring the area.
My final thoughts on The Retreat Hotel Blue Lagoon
The Retreat Hotel is a masterpiece of modern wellness travel, combining Iceland’s dramatic landscapes with luxury hospitality. Whether you’re here for relaxation, romance, or as a base to explore Iceland’s wonders, it delivers on every level.
I will definitely return for a third visit and stay at least two nights. I'd also like to try out the Silica Hotel which is nearby. I’d originally thought this was also connected to the Blue Lagoon building, but I found out this time it’s about a 10 minute walk away, with it’s own lagoon.
✨ Inspired to experience The Retreat Hotel Blue Lagoon—or another iconic property in Iceland—for yourself? I’d be delighted to help. Book your stay with me and enjoy exclusive perks like upgrades, daily breakfast, resort credits and more, all at no extra cost.
Relax at the luxurious indoor pool at Four Seasons Boston, perfect for a peaceful escape in the heart of the city. 🏊♂️🌊
Comment Below
I hope you enjoyed this review—I'd love to hear your thoughts. Have you stayed here, or is it on your wishlist? Share your impressions in the comments and let me know where you’d like me to review next. And remember, if this destination has inspired your next escape, I’d be delighted to help you book with exclusive perks through @theprivatetraveller and Fora Travel.
Set amidst Iceland’s dramatic lava fields, The Retreat Hotel at the Blue Lagoon offers one of the world’s most unique spa escapes. With private lagoon access, striking Nordic design, and Michelin-starred dining, it’s a true once-in-a-lifetime luxury stay.