We’re currently wrapping up an awesome trip to Iceland. While I’ll of course have a full review upon returning home, I’m sharing a few “live” highlights. I already wrote about our experience at the Reykjavik EDITION, which is a solid Marriott hotel.
However, the property I was most looking forward to checking out this trip was The Retreat at Blue Lagoon, which is the 60-room ultra-luxury hotel located at the Blue Lagoon.
I have to be honest, I wasn’t necessarily expecting all that much (despite the high price point), but I was so pleasantly surprised. Let me share some initial thoughts, and then upon my return home I’ll of course publish a super detailed review.
In this post:
Why I was skeptical about The Retreat at Blue Lagoon
Just for some background, the Blue Lagoon is one of Iceland’s most famous attractions, and it sees close to a million visitors per year. It’s amazing how geothermal spas like this exist, but there’s no denying that the actual guest experience feels a bit like going to a water park. I mean, of course it does, given the volume of people, and the fact that everyone is going there to get in the water.
I remember visiting the Blue Lagoon around a decade ago, and while I was impressed, I decided it wasn’t something I had to return to. There’s so much other beautiful nature to enjoy in Iceland.
In 2018, The Retreat at Blue Lagoon opened as an extension of the complex, as it’s essentially a very expensive hotel that offers access to a separate part of the lagoon. The reason I was skeptical is because I assumed the main draw of this would simply be the special access it gets, and I questioned if they’d really put effort into the hospitality portion of the experience.
Obviously they can command high rates simply because of the exclusive access, just like there are also ways to get VIP access at Disney. But that doesn’t suddenly make it some incredible experience. Adding to the intrigue, I’ve seen virtually no “real” reviews of The Retreat at Blue Lagoon, and pictures are also limited (as they’re sort of banned… I’ll cover that in a separate post).
So hey, I figured we had to take one for the team, and see what was really going on here. I was expecting to say “yeah, it was nice, but save your money and go elsewhere.” But instead, I kind of feel like this was easily among my 10 favorite hotel stays ever, even though we weren’t even there for 24 hours.
The Retreat at Blue Lagoon is a hospitality masterpiece
We ponied up an eye-watering $1,600(ish) for our one night stay, and my expectation was that I’d say “yeah, it was nice, but save your money for something else.” Well, bad news (for your bank account)… if you love great luxury properties and can stomach the cost, I’d highly recommend putting this on your list.
The thing to understand is that when you book a stay at The Retreat at Blue Lagoon, you’re really paying for two things. Not only are you getting a hotel stay, but you’re also receiving access to the Retreat Spa, which is the hotel’s spa (and that’s what the private lagoon belongs to).
Day passes to the Retreat Spa are available to the public, and cost $631 per person. So a couple would be paying over $1,250 just for day passes to the spa. By comparison, paying a little more to actually stay at The Retreat doesn’t seem like a bad value.
Let me of course acknowledge that this is an outrageous amount of money to spend on a day pass to a spa, but the whole point of this facility is that it’s super exclusive. While thousands of people use the main lagoon every day, only dozens of people use the private lagoon.
The Retreat Hotel is flawless in and of itself
Forgetting the spa for a moment, the actual hotel portion of The Retreat at Blue Lagoon is world class. From the moment we checked in until the moment we departed, service couldn’t have been better. We were greeted before we even got out of the car, we were offered anything we wanted to drink during check-in, and it was just such a beautifully choreographed experience from start to finish.
The hotel is also just stunningly beautiful. The structure is quite simple, so that nature can do the heavy lifting. They put so much thought into guest experience, from how windows are framed for the best views of the lagoon, to the music playing in the lobby.
Seriously, how beautiful are these rooms?!
Food and drinks were awesome as well, from the included breakfast (both a small but high quality buffet, as well as an a la carte selection), to the included afternoon tea, to the complimentary minibar, to the spa restaurant, to the Michelin-starred restaurant.
This was honestly what surprised me most, because the service level here was on par with some of the best luxury properties I’ve stayed at.
The Retreat Spa is actually kind of amazing
The main reason you stay at The Retreat at Blue Lagoon is to get access to the Retreat Spa. Pictures aren’t allowed in the entire complex, and they’re pretty militant about that, so let me mostly use words, and some pictures that the spa receptionists shared from their phone (again, more on that in a separate post, and I can’t confirm or deny if I will have more pictures in the full review). 😉
The best part of the Retreat Spa is that you get access to the private lagoon. Think of it as being somewhere between a lagoon and a lazy river in terms of design. Words really can’t do justice to how special this is. On our one night stay, we spent over six hours in the water. I’m like a prune at this point, TBH. But it was oh-so-worth-it.
You have access to the lagoon from 8AM until 10PM, and for much of the time we were in the water, we were completely alone. It was definitely one of those “pinch me” moments. Could this be any more beautiful?!
The only thing that could get us out of the water was this view (okay, now I’m giving away something else I have to write about… grrrr).
Beyond the lagoon, the spa as such is easily the most impressive facility I’ve ever seen. It has every amenity you could want in a spa, and even all kinds of amenities you wouldn’t want. We’re talking saunas, steam rooms, cold plunges, rooms with fireplaces, relaxation areas, rooms where there’s somehow water dripping onto a glass ceiling, etc.
I’m not usually one of those people who says “oh, you need to stay at X hotel because it has an amazing spa,” because I don’t like the economics (I hate paying a lot for a hotel, only to then pay an arm and a leg to use the spa). But I’ll make an exception… you need to stay at The Retreat at Blue Lagoon to use the amazing spa!
Bottom line
I’m so grateful I had the chance to stay at The Retreat at Blue Lagoon. I’ve long been intrigued by the property, and the lack of reviews made me want to check it for myself. I must admit, the experience exceeded all expectations, both in terms of the hotel and the spa. The private lagoon you get access to is amazing, and the hospitality experience beyond that is awesome as well.
For those who like trying out great luxury hotels, I can’t recommend this property enough. And if this hotel isn’t within your budget (fair enough!), hopefully you at least found it interesting to get some insights into what this rather secretive property is like.
What do you make of The Retreat at Blue Lagoon?
I was just looking on their website to check prices (seems 1-person rooms are not cheaper..) and noticed that at least for the dates I checked you need to book it for two nights. Ho did you manage to book it only for one night?
Looks amazing. FYI - according to their website pricing, the day pass price is per changing room for 1 or 2 people so a couple could share 1 day pass. Still really expensive.
What were your other nine favorite hotel stays.I would love to know.
“ I kind of feel like this was easily among my 10 favorite hotel stays ever”
What were your other nine? I would love to know.
I visited the Blue Lagoon once about a decade ago in the winter. We enjoyed our time, except for some tourists who were really rude. Won’t name where they were from, but a group of young 20-something were ordering wine from the ship-up bar, took a sip, and for whatever reason, poured it into the lagoon. Really bizarre behavior.
You think pouring wine into the lagoon was bad, wait till you ask them where did they go pee.
Greenwash of the year:
https://www.delta.com/elevateyourstatus
You're comparison to Disney is spot on.
An overpriced playground.
Amazing experience.
Every visitor knows they got scammed into overpaying but still go.
Few visitors will splurge even more money on a marketing trick which you get the same product but makes you believe it's exclusive.
A lot of people will say it's worth it. A cognitive bias that happens often when you're trying to justify your spend.
Many will...
You're comparison to Disney is spot on.
An overpriced playground.
Amazing experience.
Every visitor knows they got scammed into overpaying but still go.
Few visitors will splurge even more money on a marketing trick which you get the same product but makes you believe it's exclusive.
A lot of people will say it's worth it. A cognitive bias that happens often when you're trying to justify your spend.
Many will feel buyers remorse because it's just too scammy to justify.
And being locked in at the middle of nowhere, F&B is also a scam.
It's always crowded with first time visitor.
Phones everywhere. Probably a few at the bottom of the lagoon to this day.
The whole thing is man-made.
The only thing unlike, Disney. This man-made lagoon is technically a powerplant waste.
You will still have a good time and memorable experience.
There is also another cheaper but still overpriced hotel on-site.
If only someone can discover a way to monetize landfills into spas.
Did I say kids running around everywhere?
Did I say it's an overpriced playground?
Has anyone ever been able to book directky through Hyatt either with cash or points ?
While in theory a geothermal spa, it is just excess heat and water from the near by geothermal powerplant. It is an artificially created water park. A nice one though, I did enjoy my visit and I could imagine myself going again.
I think lots of people don't realize this. It's a (nifty) outdoor swimming pool that uses geothermal heating for its energy source. That's all.
Thank you so much for pointing that out.
That prompted me to get more details from wikipedia.
I see that lava destroyed the carpark in November 2024, so it has some natural elements ...
Random question, but are their no TVs in the room? Or where are they hidden?
dude you should have led with the northern lights pic!! epic shot
Reading between the lines, Lucky missed out on Northern Lights this trip (not too surprising given clouds/snowfall that he already shared). The photo is stock photo from the hotel
Maybe make a list about this: "But instead, I kind of feel like this was easily among my 10 favorite hotel stays ever, even though we weren’t even there for 24 hours."
Like what are your best hotel experiences of all time?
So happy you got to see the northern lights!
For me, this was the best part of Iceland (surprisingly). We stayed at the Lagoon suite and you get your own private lagoon which is amazing. You can book floating massage which they will come to your lagoon and float you on a mat while give you a massage. All the other rooms facing blue water is not heated so you can’t jump in and expect to swim in it. Only the Lagoon Suite gets warm volcano water.
Is there any benefit to booking thru Virtuoso or another program for this hotel or no?
Did you get a chance to try the white mud? I've always wanted to try it for its therapeutic benefits, or so they say.
Sold; lucky