Grindavik, Iceland

The Retreat at Blue Lagoon Iceland

Name: The Retreat at Blue Lagoon Iceland
Address: Grindavik, Iceland

Tranquility Index

93 / 100

Setting & Escape
Space & Seclusion
Restoration

The Tranquility Index evaluates a hotel’s setting, seclusion and restorative offering based on our research. Firsthand stays may add additional verified insights.

The Tranquil Summary

A small hotel of just over 60 suites built into an 800-year-old lava field on Iceland's Reykjanes peninsula, with its own quiet arm of the Blue Lagoon reserved for guests, a subterranean spa carved into the rock, and the Michelin-starred Moss restaurant. About 20 minutes from Keflavik airport and 45 from Reykjavik.

Best for

A short, restorative stop at the start or end of an Iceland trip, or a two to three-night bathing-focused break. Well suited to couples and anyone who wants the geothermal waters without the crowds at the public lagoon.

Consider if

It is expensive, with a two-night minimum on the suites that have direct lagoon access, and a few upper suites are overlooked from above. The landscape is raw black lava rather than green scenery, the area is geologically active, and there is little to do beyond the lagoon and spa, so it works best combined with travel elsewhere in Iceland.

Why it's Tranquil

Guests have a private, mostly silent section of the mineral lagoon, kept separate from the busy public baths next door. The spa is built into the lava itself, with a steam cave, a cold well, in-water massages and a slow ritual through geothermal seawater, silica and algae. The suites are floor-to-ceiling glass onto the moss and rock, the design is deliberately pared back, and the setting on the Reykjanes lava plain feels genuinely remote.