Picolo recommends · Lagoon hotel in Iceland
The Retreat at Blue Lagoon
Suites with windows onto the milky blue lagoon, a spa in the lava and northern lights over the lava field. Guests rate it 9.8 out of 10.
Steam rises from the water, and the lava around it is black and covered in moss. From bed you look straight out onto the milky blue water, and when darkness falls the northern lights provide the entertainment.
The rooms are light and simple, with large windows and views of the lagoon or the lava field. From several of them you step almost straight into the water.
The spa offers massages, body wraps and facials, and the hotel has three restaurants, with Moss the best known. Keflavík airport is a short drive away, so the hotel works well for your first or last night in Iceland.
On honeymoon? The Retreat is our first choice in our Iceland honeymoon guide.
Before you travel
The Reykjanes peninsula has had several volcanic eruptions in recent years, and the Blue Lagoon has at times been closed. Check the status with the hotel before you travel.
From the hotel you reach Reykjavik and Keflavík airport quickly by car. Northern lights season runs from autumn to early spring.
Picolo’s verdict
Why we chose The Retreat at Blue Lagoon
The hotel has 60 rooms, many with large windows facing the lagoon and the lava. The architecture is clean and calm, so the landscape takes centre stage.
The spa is built into the lava, and Moss Restaurant serves Scandinavian dinners. Set aside a whole afternoon in the water.
What you get
- Private access to the lagoon
- Spa built into the lava
- Three restaurants, including Moss
- Suites with large windows onto the lagoon or lava
- A short drive to Keflavík airport
A day at The Retreat at Blue Lagoon
- Morning
- Breakfast with a view of the milky blue water.
- Late morning
- Hours in the lagoon, stepping in almost from your room.
- Afternoon
- A massage or body wrap in the spa.
- Evening
- Dinner at Moss, then out under the sky for the northern lights in season.
Location
Grindavík, Reykjanes, Iceland
Open in MapsWhen to go
Northern lights season runs from autumn to early spring, while summer brings light nights. The Reykjanes peninsula has had volcanic eruptions in recent years, so check the status with the hotel before you travel.
Questions about The Retreat at Blue Lagoon
Is The Retreat at Blue Lagoon worth it?
Yes, if the spa is the main point of your trip. Guests have their own part of the lagoon and the spa in the lava, and Moss Restaurant is among the best in Iceland. If you mostly plan to drive around the island, a hotel in Reykjavík gives you more for your money.
Where is The Retreat at Blue Lagoon?
The hotel is by the Blue Lagoon near Grindavík on the Reykjanes peninsula, a short drive from Keflavík airport.
What makes the hotel special?
The spa is built into the lava, and many rooms have large windows facing the lagoon.
Which restaurants does the hotel have?
The hotel has three restaurants, including Moss Restaurant, which serves Scandinavian dinners.
Can you see the northern lights from the hotel?
Yes, during northern lights season from autumn to early spring you can see them over the lava field when the sky is clear.
Would you rather stay somewhere else?
Two other remarkable hotels in Iceland.
ION Adventure Hotel
For the northern lights: the hotel on pillars above the lava near Þingvellir.
Updated 5 Nov 2026All articles
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