Review: The Retreat Hotel At Blue Lagoon, Iceland (Shockingly Stellar!)

For the third hotel stay of our Iceland to The Residence via Cambodia trip, we spent one night at The Retreat Hotel at Blue Lagoon, a 60-key property at Iceland’s most famous tourist attraction, the Blue Lagoon.

This hotel opened back in 2018, with the goal of offering an elevated and extended experience compared to the main Blue Lagoon. Prior to my stay, I had seen virtually no “real” review of this property, and was genuinely curious what it was like, so I figured I’d take one for the team and stay here, to report back as to what it’s really like.

Let me be perfectly honest — going into this stay, I figured this hotel would be a bit of a tourist trap, and wouldn’t be a true luxury hotel experience. After all, this is an independent property at a mass-market tourist destination, so it hardly seems like the place where you’d expect an amazing luxury hotel.

I’m happy to report that I was wrong. Much to my surprise, the Retreat at Blue Lagoon was simply spectacular, from the property’s design, to the incredible spa complex and private lagoon, to the service, to the overall vibe. This property almost has an Aman-like vibe, right at one of Iceland’s biggest tourist attractions. While this place is super pricey, it’s worth it, if you can swing it, and value these kinds of experiences.

This is one of my most memorable hotel stays ever, and seeing a spectacular display of the Northern Lights didn’t hurt either!

Booking the Retreat at Blue Lagoon

Rates at the Retreat at Blue Lagoon are super steep, but after staying there, I sort of understand why. Prices vary seasonally from around $1,800 to $2,300 per night for a base room (give or take), and since we were staying off season, our rate was at the bottom end of that range (we paid $1,800 for our one-night stay).

All rates at the hotel include complimentary breakfast, afternoon coffee and tea, all minibar contents, morning yoga, welcome drinkso, access to the property’s incredible spa, and Blue Lagoon skincare amenities. Unfortunately even though this is an ultra-luxury property, it doesn’t participate in any programs like Virtuoso, etc., so there’s no way to get extra perks, sadly.

Now, when booking a stay at the Retreat at Blue Lagoon, there are several things to note:

• For many dates and room types, the hotel has a two-night minimum stay, though that didn’t apply over the dates we were staying
• Note that the hotel is pretty strict about check-in and check-out times, and that’s because access to the spa and lagoon (the key selling point of this property) is heavily restricted, so don’t expect that you’ll be able to access the facilities before the published check-in time (if you arrive early or leave late, they will give you tickets to the main Blue Lagoon, though)
• If you’re staying for multiple nights, there are packages you can book that include extra things, like dinner at the hotel’s restaurants, spa treatments, etc.; these could be worth considering, but the savings don’t seem to be that huge, at least based on my quick math
• There’s often a fourth night free promotion for stays at the hotel, if you’re willing to stay for that long

I also want to mention that while rates here are super high, the important thing to keep in mind is that this gets you access to the property’s special spa area and lagoon. People can also purchase day access to the spa and lagoon without staying at the hotel, and that costs around $1,400 per couple.

Obviously this is all super expensive, but the intent with the spa and lagoon is specifically to keep it exclusive and limit crowding. So incrementally, the cost of actually staying at the property vs. buying a day pass is quite reasonable.

Retreat at Blue Lagoon location

The Blue Lagoon is located in a lava field on the Reykjanes Peninsula in southwestern Iceland. It’s in the town of Grindavik, which is roughly 12 miles from Keflavik Airport (KEF), and around 30 miles from the city of Reykjavik.

So in terms of logistics, the ideal situation is to stay here either upon arrival in the country or upon departure, assuming you can make the timing work (in the sense that I wouldn’t want to stay here if I had a 7AM flight, since I’d want to make my most of the time at the hotel).

When you arrive at the Blue Lagoon, you’ll see signage specifically for the Retreat Hotel, which you’ll want to follow. You’ll then find yourself at the entrance to the hotel. The arrival was absolutely flawless — there was no one in sight as we pulled up, but the second we arrived, a bellmen came running outside to help us with our bags, and to park our car (valet parking is complimentary).

From there, we were escorted into the lobby, so check-in formalities could happen.

Retreat at Blue Lagoon lobby & check-in

The Retreat at Blue Lagoon is a work of art, plain and simple. The lobby is stunning — it’s elegant with a great sense of place, and most importantly, it has huge windows, so your eyes are drawn outside. The lobby also has relaxing music playing, so it already offers a spa-like feeling upon arrival.

Iceland isn’t exactly known for over-the-top hospitality (at least in a traditional sense), and for that matter, when staying at hotels, you’re lucky if you even get to meaningfully interact with anyone from Iceland. So I found it interesting how many of the people working in the front office were Icelandic, and they also couldn’t have been friendlier and more personable.

We were invited to have a seat in the lobby, and were immediately offered welcome drinks, with a choice of just about anything, and we opted for some champagne.

We were told it would just be a short wait until our room was ready, so in the meantime, check-in formalities were taken care of, with all the property details being explained. We were also informed that we had been upgraded one category, from a lava view junior suite to a lagoon view junior suite. We were also given our wristbands, which offer access to the spa and lagoon, and can also be used to charge things to the room.

While waiting, we took a quick look around the lobby, beyond just the main area. There’s a small store where you can purchase Blue Lagoon branded items.

There’s also a library area, which is nice to hang out in. There’s even a liquor display there, and you can pour yourself a glass of anything, with an honor system, where you simply fill out a form as to what you consumed.

There’s also a viewing deck where you can sit outside. Note that this doesn’t overlook the main part of the lagoon.

After only a short wait, we were escorted to our room, and couldn’t wait to start our adventure!

Retreat at Blue Lagoon guest rooms

With only 60 rooms, accommodations at the Retreat at Blue Lagoon are spread across two wings, taking up two floors. I adore the design of this place — it’s nothing over-the-top, but it just feels so appropriate for the location.

Our room was located on the lower level, and after walking down the main hallway, our room was toward the end and on the left (we were in room 118).

Junior suites at the hotel are described as being 40 square meters (around 430 square feet). I’d say the hotel is taking some liberties by calling these “suites” of any sort, but either way, I loved the accommodations.

While the room wasn’t huge, the design and views were incredible. The centerpiece of the room was a very plush bed with excellent pillows. This was by far the most comfortable bed we had during our time in Iceland. There was also a seating area, with two chairs, one of which had an ottoman.

Behind the bed was some luggage storage and closet space, which also housed the minibar.

The minibar was well stocked, and everything was complimentary, ranging from the coffee, to the tea, to the water and soft drinks, to the snacks.

The bathroom was back over on the side of the room, with a sink area acting as the centerpiece of the bathroom.

Waiting on the counter next to the sink was a pouch with some Blue Lagoon skincare products, which could be taken home.

Over on the right side was a walk-in shower with incredible water pressure, plus a soaking tub.

Toiletries were also Blue Lagoon branded, including shampoo, conditioner, body wash, body lotion, etc.

The toilet was then on the opposite side of the bathroom of the shower and bathtub, and it had a sliding door, for some privacy.

The room boasted a nice terrace overlooking the lagoon. Let me emphasize that the lagoon outside of the rooms isn’t one you’re supposed to swim in, but instead, it’s just to provide a nice view.

As an example of how great the service was, between the time that we arrived at the hotel and when we got into our room, the nice guy who checked us in wrote us a note to welcome us (and you know it was written on the spot, because while Ford goes by that name, it’s not his legal first name, so obviously that was written based on how he introduced himself).

There were also a couple of extra bottles of water, plus a box of chocolates.

What an absolutely incredible room… I can’t say enough good things about it! One other thing worth mentioning is that Wi-Fi in the room was fast and free, so if you need to stay connected while vacationing here, that’s not an issue.

Retreat at Blue Lagoon spa & lagoon

The biggest selling point of staying at the Retreat at Blue Lagoon is that you get access to the special spa and lagoon. As I mentioned earlier, outsiders can also buy day passes for this, but a couple will pay around $1,400 for access for one day.

Before I get too deep into this, let me mention that the spa has a no electronics policy. So not only aren’t you allowed to take pictures, but you’re not even allowed to look at your phone. It has to be away at all times, and that’s definitely a controversial policy that people will either love or hate.

The spa has a security team that are like hawks with watching people, so don’t expect to get away with too much. Let me mention that the security staff are happy to take pictures of you with the spa’s smartphone camera (but not your own), and they’ll even share other pictures that they’ve taken by email or AirDrop.

With that out of the way, let me say that the Retreat at Blue Lagoon has the most impressive spa that I’ve ever seen. It covers around 2,300 square meters (24,750 square feet), and it’s simply next level. I’ve never seen anything like this before.

The spa has eight different experiences areas, with everything from saunas and steam rooms, to cozy relaxation areas with fireplaces, and much, much more. There’s also a roughly 45-minute “Blue Lagoon Ritual,” as it’s called, which is basically a self-guided spa treatment.

Now, I must acknowledge that I did slightly violate the no photography policy, because my goal is to report back on the experience as much as possible. I very much respect (and agree) with the hotel’s policy of having everyone enjoy a private experience, but I did subtly snap some pictures when there was no one around (the place was deserted during our visit). So while I did violate the rules, I think I was following the spirit of them.

Of course the main selling point of the spa is that you get access to a huge, private lagoon area, separate from the main one. This consists of several different lagoons, connected by stairs and bridges, since they’re at slightly different heights. Think of it as almost being like something between a lagoon and a lazy river, based on the shapes of the various areas, plus the surroundings.

Below are some pictures that the staff shared with me (since they can send you pictures they take), snapped the morning of our stay, since it was particularly beautiful. I really can’t put into words how magical this all was. I know this might sound stupid, but it was just such a special experience.

We spent a total of six hours in the water, we loved it that much. What added to the experience was that there had been a huge snowstorm the day before, so the surroundings couldn’t have been more beautiful.

There were long periods of time where we had the entire lagoon area to ourselves. It was just incredible. By the way, there’s a little “drink window” in one of the lagoons, where you can order from a limited selection of drinks. Talk about a classy swim-up bar… or something!

As a point of comparison, below is what the main part of the Blue Lagoon looks like, which is what 99%+ of people visit. It’s of course still beautiful, but not as nice. I also think it’s worth emphasizing we were traveling off season, because in summer, the main part of the lagoon is packed.

The Retreat at Blue Lagoon also has paid spa treatments, including in-water massages. Those take place in an area at the back of the resort, near the main lagoon.

I can’t say enough positive things about this setup, because it really is that special.

Retreat at Blue Lagoon gym & yoga room

The Retreat at Blue Lagoon has a gym on the second floor, which can be accessed by guests 24/7. The gym is basic, with half a dozen cardio machines, plus a good selection of free weights, so it does the trick.

There’s also a yoga room, where complimentary classes are offered each morning.

Retreat at Blue Lagoon restaurants & bars

When it comes to eating and drinking at the Retreat at Blue Lagoon, here are the basics:

• The complimentary breakfast and afternoon coffee are served in the lobby area
• Spa Restaurant is the all-day dining restaurant, and it’s a casual place to grab a bite to eat without even leaving the spa
• Moss Restaurant is the Michelin-starred restaurant that’s open for dinner select nights, so it’s impressive to see such fine dining at a hotel like this
• Lava Restaurant is the main restaurant that’s not exclusive to the hotel, serving lunch and dinner

Let’s go over each of these venues in more detail. Let’s start with the complimentary afternoon tea and breakfast, which is available to all hotel guests, and served in the lobby. The lobby area is huge, so there’s plenty of space to enjoy this.

The hotel offers its complimentary Icelandic coffee time, daily from 4PM until 5PM. This comes with a choice of coffee or tea, and you can find the selection below.

I must say, the barista coffee was excellent, and the views don’t suck either!

We were then brought a tray with a few sweet and savory snacks — yum!

In the morning, breakfast was served between 7:30AM and 11AM, and consisted of a combination of a buffet and an a la carte selection. The buffet was small but high quality, with all kinds of fresh fruit, yogurt and muesli, cold cuts and cheese, freshly baked bread and pastries, and freshly squeezed juices.

On top of that, there was a menu you could order off of, to complement the buffet selection.

I ordered the avocado toast with a side of scrambled eggs (unconventional perhaps, but don’t judge!), while Ford had the eggs benedict.

Next up, Spa Restaurant is located in the spa (as you may have guessed based on the name). It’s open daily from 8AM until 8PM, first serving breakfast, and then serving an all-day menu, which you can find here. What’s nice is that you can wear your bathrobe at this restaurant all day long, so it’s super casual.

We were having so much fun in the lagoon that we ended up just having dinner here, and we thought the food was phenomenal across the board. We ordered the avocado and seed crackers, tuna tartare, Icelandic burrata, and beef tataki. All four dishes were delicious, and perfect for sharing.

Moss Restaurant is the hotel’s Michelin-starred venue, serving a tasting menu, and it’s open Wednesdays through Sundays, starting at 6PM. Initially we were going to try and eat here, though I’m so happy we didn’t. I’m sure the food is excellent, but obviously having a drawn out dinner here would’ve limited our ability to enjoy our time in the lagoon, which was the main point of staying here.

So I’d recommend eating here if you’re staying for multiple nights, but for one night, we just didn’t want to spend hours having a great (and very expensive) dinner, given the alternatives.

Given the hotel’s strict check-in and check-out policies, we decided to have lunch at Lava Restaurant after checking out. This restaurant isn’t fully part of the hotel, but instead, is open to anyone visiting the Blue Lagoon. So as you’d expect, it can get pretty crowded.

The restaurant is open daily from 11:30AM until 9PM, serving lunch and dinner, and you can find the menus here. Bathrobes can be worn until 4PM.

While obviously not quite as serene as The Retreat at Blue Lagoon, this was still a great dining experience. At the start of the meal, we were brought freshly baked bread, with whipped butter.

For starters, I ordered the mushroom soup with shiitake mushrooms and coconut cream, while Ford had the baked golden and ruby beets salad.

Then for main courses, I opted for the fish of the day (cod), with broccolini, dates, and shellfish sauce, while Ford had the grilled beef with Jerusalem artichoke and shimeji mushrooms.

Retreat at Blue Lagoon observation deck & Northern Lights

Before I wrap up this review, it’s worth mentioning that the Retreat at Blue Lagoon has an observation deck, which gives you a good vantage point over the area. It really makes you appreciate how rugged and harsh the landscape in the area is.

That wasn’t even the best view from the observation deck, though. On the night of our stay, we were sitting in the lobby for a bit, and the front desk associate informed us that the Northern Lights were currently out, so we headed up to the observation deck.

My goodness, I thought this stay couldn’t get any better, but then this happened…

Retreat at Blue Lagoon service

Across the board, we found service at the Retreat at Blue Lagoon to be exceptional. From the front office staff, to the spa staff, to the restaurant staff, everyone was exceedingly friendly. They really try to make this a special experience for guests, which I wasn’t expecting.

Iceland is generally a pretty low-touch service country, so it was lovely to experience such hospitality, especially with many staff actually being Icelandic.

Bottom line

The Retreat Hotel at Blue Lagoon exceeded my expectations in every way, and is a genuinely incredible experience. While the Blue Lagoon as such is kind of like the Disney World of Iceland, the Retreat at Blue Lagoon elevates that experience greatly.

To my surprise, the Retreat had gorgeous design and rooms, friendly service, and incredible amenities. Most notable is access to a huge spa, and to a private lagoon. Spending hours in the water while barely seeing another soul, and capping off the night with a Northern Lights viewing, really is an experience that’s tough to beat.

Yes, this hotel is expensive, and at first I wondered if it would be worth it. I think it’s important to frame the cost of a stay here in the context of spa access for the day costing $1,400 for a couple. I’m not saying that’s a great deal or money that everyone should spend, but at that point, the incremental cost for actually staying here is quite low.

What do you make of the Retreat Hotel at Blue Lagoon?