The Retreat At Blue Lagoon: One Of My Favorite Hotel Stays Ever!

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.

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.

The Blue Lagoon

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 entrance

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 at Blue Lagoon property

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 Retreat at Blue Lagoon lobby

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.

The Retreat at Blue Lagoon lobby
The Retreat at Blue Lagoon yoga room

Seriously, how beautiful are these rooms?!

The Retreat at Blue Lagoon guest room
The Retreat at Blue Lagoon guest room

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.

The Retreat at Blue Lagoon spa restaurant
The Retreat at Blue Lagoon breakfast buffet
The Retreat at Blue Lagoon afternoon tea

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 Retreat at Blue Lagoon private area
The Retreat at Blue Lagoon private area
The Retreat at Blue Lagoon private area

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).

The Retreat at Blue Lagoon view

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?

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Sicko Guest

So many negative comments from those who haven't stayed there, some pretending to be psychologists who write it up to "groupthink" when you pay a lot of money, it must be good (true for most high-end wine drinkers). However, I'm a cheap bastard that only indulges when it is worth it. A few years ago we paid for a two-night package that included dinner at the Moss (amazing), dinner at the Lava (great food, but a bit of a cafeteria feel with a great view). The single guy next to us at the Lava literally was licking all his plates after each course (gross). I completely agree with the author of the piece, although our experience was even better. Yes, the private lagoon opens at 8 am. But I woke up at 6 am, and there is no one stopping you from spending two hours alone exploring the pools. Our package ($4,000) for two nights, two amazing dinners, three additional spa treatments (Massage, facials, mud baths), and EVERYTHING included (in-room fully stocked bar, library room with snacks and full bar) made everything feel wonderful. I've spent more at a lousy Ritz-Carlton hotel where they "nickel and dime" you for everything ($39 tacos and $30 cocktails). Oh, and you can request "Northern Lights" wake-up calls when they knock on your doors and take you to the rooftop deck to see the lights when (and if) they appear. If you want an experience that leaves you hapy for spending $4,000 for two people for two days, this is it.

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Luke Guest

A lot of miserable people in these comments. Who cares if it's manmade? The Retreat is an incredibly relaxing spa experience. I've never been as relaxed as I was during my stay. It's an incredible property for those who value complete relaxation and disconnecting from the outside world for a day or two.

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Azamaraal Guest

My understanding is that the "lagoon" is actually the hot water reservoir fed by the thermal generating station and not an actual lagoon as such. Still hot water though.

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Don Guest

Seems amazing and looks beautiful. If you can swing it, it seems worth it. Thank you for the Icelandic insights.

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Ag Buffe Guest

If you are into geothermal spas, for a more authentic experience I suggest going to Japan where such retreats date back to the 6th centaury, and where there are traditions and history. Somehow bathing in a runoff of a thermal power plant does not excite me even if I write it off as a business expense.

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