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The Retreat at Blue Lagoon: Iceland's Most Luxurious Stay

Methven Forbes

14 March 2026

The Retreat at Blue Lagoon: Iceland's Most Luxurious Stay

The Retreat at Blue Lagoon: Iceland's Most Luxurious Stay

In a country renowned for its raw natural beauty and rugged accommodations, The Retreat at Blue Lagoon stands as Iceland's most exclusive and luxurious hospitality experience. Located on the Reykjanes Peninsula, just 39 kilometres from Reykjavík and a mere 20 kilometres from Keflavík International Airport, this 62-suite sanctuary represents the pinnacle of Icelandic design merged with unparalleled wellness luxury.

Opened in April 2018, The Retreat was conceived as an adults-only oasis that seamlessly integrates with the volcanic landscape surrounding the world-famous Blue Lagoon geothermal spa. What sets this property apart isn't merely its exclusivity—though with rates starting at 150,000 ISK (approximately €1,050 or $1,150) per night, it certainly commands attention—but rather its masterful fusion of Iceland's geological wonders with sophisticated hospitality.

Architecture in Harmony with the Lava Fields

The Retreat's design philosophy centres on becoming one with the 800-year-old lava field that forms its foundation. Icelandic firm Basalt Architects created a structure that appears to emerge organically from the moss-covered lava rock, with low-lying buildings featuring walls of raw volcanic stone and expanses of floor-to-ceiling glass.

The hotel's silhouette deliberately avoids competing with the dramatic landscape, instead creating what architects describe as "earth sheltered" accommodation. This approach serves both aesthetic and practical purposes—the thick lava rock walls provide exceptional insulation against Iceland's unpredictable weather whilst creating an intimate connection with the ancient geological forces that shaped this peninsula.

Each of the 62 suites features private terraces overlooking either the Blue Lagoon's milky blue waters or the raw lava fields stretching toward distant mountains. The interiors showcase Icelandic design at its finest, with custom furnishings crafted from local materials including driftwood, Icelandic wool, and basalt stone.

Exclusive Access to Blue Lagoon

Perhaps The Retreat's most compelling feature is its private access to an exclusive section of the Blue Lagoon. Guests enjoy their own entrance to the geothermal waters, completely separate from the main lagoon that attracts over one million visitors annually. This private lagoon spans 700 square metres and maintains the same therapeutic properties as the main pool—water temperatures of 37-39°C enriched with silica, algae, and minerals.

The exclusive area includes underwater speakers playing ambient music, a swim-up bar serving champagne and wellness shots, and dedicated relaxation areas carved directly into the lava rock. Most significantly, guests can access these waters 24 hours a day, offering the extraordinary experience of bathing in geothermal springs under the northern lights during winter months or the midnight sun in summer.

Beyond the private lagoon access, Retreat guests receive complimentary entry to the main Blue Lagoon facilities, including the renowned spa treatments and the lagoon's various temperature zones. This dual access allows for both intimate relaxation and the full Blue Lagoon experience when desired.

Spa and Wellness Excellence

The Retreat Spa elevates Iceland's wellness culture to international luxury standards. The 1,000-square-metre facility includes seven treatment rooms, each with floor-to-ceiling windows overlooking the lagoon or lava fields. Signature treatments incorporate Blue Lagoon's silica mud masks and algae-based therapies, alongside traditional Icelandic wellness practices.

The spa's crown jewel is the underground relaxation chamber, built into a natural lava cave and featuring a geothermal hot spring. This intimate space, accommodating just eight people, offers an almost mystical wellness experience with mineral-rich steam rising from the earth itself.

Treatment prices range from 25,000-45,000 ISK (€175-315), with signature rituals incorporating indigenous ingredients like Icelandic sea salt, birch extract, and hand-harvested lava stones.

Culinary Innovation at Moss Restaurant

Moss Restaurant, The Retreat's fine dining establishment, has quickly established itself among Iceland's premier culinary destinations. Chef Viktor Örn Andrésson creates modern Icelandic cuisine that showcases local ingredients with international techniques. The restaurant's floor-to-ceiling windows provide uninterrupted views across the Blue Lagoon whilst diners enjoy seven-course tasting menus featuring Icelandic lamb, Arctic char, langoustine, and foraged herbs.

The wine programme emphasises natural wines alongside carefully selected champagnes and spirits, with many selections stored in a wine cellar carved directly into the lava rock. Dinner at Moss typically costs 18,500 ISK (€130) for the seven-course menu, with wine pairings adding 12,500 ISK (€88).

Practical Considerations

The Retreat operates year-round, though the experience varies dramatically with seasons. Winter visits (November-March) offer potential northern lights viewing from the private lagoon, whilst summer stays (May-September) provide midnight sun experiences and better conditions for exploring the Reykjanes Peninsula.

Transportation from Keflavík Airport takes 20 minutes by car, with The Retreat offering private transfers for 15,000 ISK (€105) each way. Public buses connect to the Blue Lagoon from Reykjavík, though most Retreat guests opt for private transport given the luxury positioning.

Booking requires advance planning, particularly during peak summer months and northern lights season. The property frequently operates at full capacity, with weekend availability especially limited. Suite categories range from the entry-level Moss Suite (60 square metres) to the spectacular Lagoon Suite (100 square metres) with direct lagoon access from private terraces.

The Definitive Luxury Iceland Experience

The Retreat at Blue Lagoon represents more than accommodation—it's an immersion into Iceland's unique intersection of luxury and raw nature. Whilst the rates place it firmly in ultra-luxury territory, the experience justifies the investment for travellers seeking Iceland's most exclusive and sophisticated hospitality.

For those accustomed to international luxury hotels, The Retreat offers familiar service standards within an utterly unique Icelandic context. The combination of private geothermal lagoon access, architectural excellence, world-class spa facilities, and fine dining creates an experience unavailable anywhere else in the world.

This is Iceland's luxury hospitality at its absolute pinnacle—a place where volcanic forces, innovative design, and exceptional service converge to create something truly extraordinary.

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Our Verdict

A practical guide worth reading before you go.

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