Iceland’s Blue Lagoon is a world-famous destination, attracting millions of tourists annually. However, the experience can often feel crowded and commercialized. The Retreat Hotel, opened in 2018, aims to elevate that experience by offering an exclusive, high-end alternative. This review breaks down what makes the Retreat stand out: it’s not just a hotel, but a curated luxury experience that almost defies expectations for such a popular location.

Pricing and Inclusions

The Retreat doesn’t come cheap: rates typically range from $1,800 to $2,300 per night for a base room, depending on the season. Despite the high cost, the price includes a surprisingly comprehensive package: complimentary breakfast, afternoon refreshments, fully stocked minibar, morning yoga, and unrestricted access to the hotel’s private spa and lagoon. Unlike many luxury hotels, there are no loyalty program perks (like Virtuoso benefits) available.

The hotel often enforces two-night minimum stays, but this can vary. Strict check-in/check-out times apply, as access to the main attraction – the spa and lagoon – is time-gated. Guests arriving early or leaving late may be directed to the public Blue Lagoon instead.

Location and Accessibility

The Blue Lagoon is situated in a lava field on the Reykjanes Peninsula, roughly 12 miles from Keflavik International Airport (KEF) and 30 miles from Reykjavik. Staying at the Retreat either upon arrival or departure is ideal, maximizing access to the facilities without wasted travel time. The hotel is clearly signposted within the Blue Lagoon complex, and valet parking is complimentary. Service is immediate: staff appear as soon as a vehicle arrives to assist with luggage and parking.

Lobby and Check-In

The Retreat’s lobby is a striking blend of elegance and natural surroundings, featuring floor-to-ceiling windows that frame the unique Icelandic landscape. Check-in is efficient, with welcome drinks offered immediately. Staff are unusually personable for Iceland, often engaging in genuine conversation and providing upgrades when available. Guests receive wristbands granting access to the spa and lagoon, also used for in-house charging. A small shop and a self-service liquor bar (honor system) add to the experience.

Guest Rooms: Elevated Comfort

Accommodations consist of 60 rooms spread across two floors. Junior suites (around 430 square feet) are the base category, though the hotel generously describes them as suites. The design is understated yet luxurious, with a focus on comfort and views. Beds are exceptionally comfortable, and rooms feature complimentary minibars stocked with drinks and snacks. Bathrooms include walk-in showers, soaking tubs, and Blue Lagoon-branded amenities. Each room has a private terrace overlooking the lagoon (though the lagoon outside the rooms isn’t directly swimmable).

The service extends to personalized touches: handwritten welcome notes and unexpected extras like chocolates further enhance the guest experience. Wi-Fi is fast and reliable.

The Spa and Private Lagoon: The Core Experience

The Retreat’s primary draw is its exclusive spa and lagoon. Outsiders can purchase day passes for around $1,400 per couple, but staying at the hotel guarantees access. The spa enforces a strict no-electronics policy, designed to encourage complete disconnection. Staff actively monitor compliance, though they’ll take photos for guests if requested.

The 24,750-square-foot spa features eight distinct zones, including saunas, steam rooms, relaxation areas, and a 45-minute self-guided ritual. The private lagoon consists of multiple interconnected pools at varying heights, creating a unique swimming experience that feels more secluded than the main Blue Lagoon. A swim-up drink window adds a touch of indulgence. The atmosphere is often uncrowded, especially during off-peak seasons, making for a truly immersive experience.

Additional Amenities

The Retreat includes a basic 24/7 gym with cardio and free weights, as well as a complimentary yoga room with daily classes. Dining options range from casual all-day dining to a Michelin-starred restaurant open select nights. Complimentary breakfast and afternoon tea are served in the lobby.

The Verdict

The Retreat at Blue Lagoon defies expectations. It’s not just an expensive hotel; it’s an exclusive retreat that delivers on its promise of luxury and privacy. While the cost is significant, the included amenities and access to the private spa and lagoon make it a worthwhile investment for those seeking a high-end Icelandic experience. The combination of impeccable service, thoughtful design, and a unique location elevates the Retreat above typical tourist accommodations.