Staying at the Blue Lagoon Retreat Hotel in Iceland: Full Review
Four nights at the Retreat Hotel at Iceland’s Blue Lagoon was the perfect way to end our trip. Here’s why this splurge-worthy stay lived up to the hype.
We generally like to end an active trip with some wind-down time, and the Blue Lagoon felt like the perfect place. After exploring Iceland’s waterfalls, caves, and coastlines, we spent four nights at the Retreat Hotel at the Blue Lagoon. It was the ideal reset before heading home — equal parts relaxing, luxurious, and unforgettable.
Our suite overlooked a secluded stretch of the lagoon — the perfect view to wake up to each morning.
Arrival Experience
The customer service here was truly unmatched. We were greeted immediately, offered a glass of champagne, and our luggage was whisked away while we settled into the inviting lobby. Even though a few other guests were checking in, it never felt rushed or impersonal — more like a warm welcome than just another reservation.
Rooms & Amenities
Our suite overlooked a secluded section of the lagoon (a scenic view, not the day-pass swimming area). Someone personally came to our room to walk us through all the amenities, including the in-room technology, which made everything feel effortless. The space was modern yet cozy — with floor-to-ceiling windows, a private soaking tub, and calming décor that blended perfectly with the surrounding lava fields.
Floor-to-ceiling windows brought the lagoon right into our room.
Pools & Spa
One of the biggest perks of staying at the Retreat Hotel is access to the private Retreat Lagoon — a serene area reserved exclusively for overnight guests. The atmosphere here feels worlds away from the busier public lagoon, with calm waters and far fewer people.
Guests of the Retreat have access to a private lagoon that connects to the main Blue Lagoon area.
It’s important to note that personal cameras and phones are not allowed in the private guest area — and this rule is strictly enforced by staff. At first, it felt unusual to put our phones away, but it ended up making the experience more peaceful.
The hotel does provide a solution: at designated spots, staff photographers will take your picture (upon request) and email it to you afterward. This way, you can still have a couple of keepsake photos without disturbing the tranquil environment.
Since cameras aren’t allowed in the private lagoon, the hotel provides complimentary photos taken by staff.
Dining
The Retreat Hotel has multiple dining options, and we were able to try them all:
Moss Restaurant – Fine dining with panoramic views, Michelin-recommended. The atmosphere felt elevated but not stuffy, and the dishes were as beautiful as they were delicious.
Spa Restaurant – Light meals served in your robe between lagoon sessions, perfect for recharging without breaking the spa rhythm.
Lava Restaurant – Built right into the lava rock and open to day visitors. While it had more of a buzz, the setting was still unique and worth a stop.
A unique highlight was our private wine tasting in the subterranean wine cellar, a volcanic cave filled with bottles stacked floor to ceiling. Pairing wines with Icelandic seafood and specialties made for one of the most memorable evenings of the trip.
Afternoon tea with pastries and coffee between spa sessions.
Fresh seafood paired with wine, with the lagoon right outside our window.
Every dish was artful — this dessert came beautifully arranged on Icelandic lava rock.
A private wine tasting in the Retreat’s underground lava rock cellar — one of the most memorable parts of our stay.
Tips for Booking & Making the Most of Your Stay
Stay at least 2 nights if you can — it takes time to truly unwind.
Book the Blue Lagoon at the end of your Iceland trip — it’s the perfect way to relax after days of exploring.
Make dinner and spa reservations in advance — spots fill quickly.
Don’t feel pressure to “do it all.” The beauty of the Retreat is slowing down and soaking it all in.
Staying at the Retreat Hotel at the Blue Lagoon was easily one of the highlights of our Iceland adventure. From the tranquil private lagoon to the world-class spa and dining, it delivered on every level. If you’re looking for a splurge-worthy way to end your trip, this is it.
Relaxed and happy after four nights at the Retreat Hotel — the perfect ending to our Iceland trip.