Named among the nominees for MICHELIN's inaugural Wellness Award, The Retreat at Blue Lagoon has earned recognition for what lies both above and below ground: a private lagoon fed by geothermal seawater, a spa tunnelled into 800-year-old rock and a setting so elemental it feels like the island is still taking shape around you. Awarded One MICHELIN Key, it is a truly special hotel, made even more special by its restaurant. A picture-perfect ode to Iceland, Moss is the MICHELIN-Star icing on an utterly spectacular cake.
Setting the (Remarkable) Scene
Iceland is still in the act of becoming. Born of fire and seawater, it sits on the seam where two tectonic plates inch apart, a restless landscape in constant revision. Within easy reach of Reykjavík, the scenery shifts at speed: carpets of moss spread across cooled lava, steam lifts from fissures and volcanic cones rise against a horizon edged with ice.Decades after Reykjavík established itself as one of Europe’s most dynamic capitals, the island continues to exert a magnetic pull, whether for journeys that take in glaciers, waterfalls and black-sand coasts, or for those who swap a winter sun break for geothermal heat. Despite the latitude, there are always lagoons to slide into, their mineral-rich waters softening the bite of Arctic air.
The contrasts are striking. Norse traditions sit easily alongside a contemporary cultural scene; renewable energy and care for the earth shape everyday life as much as history does. With a land mass larger than Ireland and a population smaller than Dublin’s, space itself is part of the experience: vast, elemental and often unpredictable. On the Reykjanes Peninsula, that presence is felt most strongly: here, roads cross recent lava and in places you are warned not to stop at all, a practical reminder that the ground is still alive beneath your feet.
Just ahead lies one of Iceland’s most recognisable landmarks: the Blue Lagoon, once named one of National Geographic’s 25 Wonders of the World. It is a steamy expanse of mineral-rich seawater set against a backdrop of black lava and silver sky. The colour is unmistakeable: an opaque, almost luminescent blue created by the lagoon’s high silica content.
Most visitors stop here. But tucked deeper into the landscape is The Retreat, which is where a more immersive experience begins.
The Retreat: A Hotel Unlike Any Other
Set against an ancient lava field on Reykjanes, The Retreat puts you in the landscape rather than looking at it. The two-storey, low-profile build sits close to the rock; steam drifts across walkways; broad panes of glass pull the outside into every corridor. Recent volcanic activity has led to sensible safeguards: earth embankments, close liaison with the Met Office and clear evacuation drills. So the mood on the property stays steady even when the peninsula rumbles.
The heart of the hotel is below ground. A 2,300-square-metre spa is carved into the rock and opens onto a residents-only lagoon. The signature experience is the Blue Lagoon Ritual, a three-stage circuit using the lagoon’s natural elements: a salt scrub, a layer of white silica and a final application of algae, each with its own restorative properties. Therapists also work in the water itself: a rare treatment that uses warmth and buoyancy to good effect. Heat rooms and resting spaces are arranged for unhurried loops between dips, and phones stay out; staff will take photographs on request.
The suites keep the focus on the view: there are 60, deliberately screen-free, with wide windows looking onto either pale water or dark lava. Tones stay close to the setting with soft greys, blue-greens, natural wood and stone. Higher categories add separate living areas and some lagoon-side suites allow you to step straight onto the water from a private patio. At the top end, the Blue Lagoon Suite comes with its own secluded pool.
The design takes its cues from geology, with architecture aiming for synthesis rather than contrast. Lines are clean, colours are taken from the ground underfoot and weather becomes part of the show through floor-to-ceiling glass. Even the wine room is carved into the rock, a small flourish that underlines the hotel’s ‘of-this-place’ brief.
Outdoors, the hotel’s lagoon is layered at different levels, linked by short bridges so you can wander through warm channels without leaving the water. Temperatures hold year-round and access points from the spa make dipping in and out easy. Beyond the pools are a sauna, steam room and a handful of quiet spaces: a lava room, a fireside lounge and a refreshment area, arranged for brief pauses between soaks. Access and payments run on a waterproof wristband, leaving you free to move hands-free.
Moss: The Perfect Restaurant for the Setting
Dining at The Retreat follows the same philosophy of place: ingredients, technique and setting working together in balance. This most notable at Moss, the hotel’s MICHELIN-Starred restaurant.
Moss crowns The Retreat at its highest point, a glass-fronted room looking straight out onto the lava fields. The mood is serene, the lighting measured and the view does most of the talking. The kitchen works in a contemporary Nordic vein: precise technique, clear flavours and a strong local larder. Expect a multi-course tasting menu that shifts with conditions and supply, drawing on cold-water seafood, produce from geothermal greenhouses and carefully aged meats, with occasional Asian inflections utilised with fine judgement.
The cellar is stocked with mature vintages alongside incisive young wines, the list balancing benchmark houses with distinctive growers, and the pairings calibrated to the cooking. Guests can arrange a tasting before dinner, a short, focused introduction that sets the frame for the meal. The service stays discreet and well-drilled from first bite to last, with steady pacing, clear explanations and an easy read of the table.
Need to Know
A bite-sized breakdown of your most frequently asked questions about The Retreat at Blue LagoonWho comes here?
The Retreat draws a particular kind of traveller, those who prize immersion alongside indulgence. Couples arrive seeking quiet communion with the landscape. Design enthusiasts come for the architecture. Wellness devotees book treatments in the subterranean spa. Others come simply to disconnect – a natural reset when the landscape demands your full attention. Most use it as a launch point, venturing out by day before returning to thermal waters and intimate evenings. At under 30 minutes from Keflavík, it bookends longer journeys without feeling like an airport hotel.
What’s the best time to visit?
Summer means midnight sun and wide-open roads, ideal for those who want to cover ground. Winter trades daylight for darkness: short, moody days and the possibility of aurora overhead. The wind picks up, the crowds thin out, but the water never cools. Should Reykjanes stir again, a quick check of local advice is worth the effort.
Any details to note?
The hotel welcomes guests of all ages, though it is naturally geared toward those 12 and up, old enough to make full use of the lagoons and spa. For safety reasons, the Lava View and Lagoon Suites, both with direct water access, aren't available to families with children under 9. A two-night minimum applies; one night barely scratches the surface.
What's the best room?
Junior Suites share the same bones: timber-clad walls, full-height glass, a standalone tub, but differ in what they frame. Lava fields, moss-blanketed rock or lagoon water: pick your view. For something more expansive, the two-room Lagoon Suite opens onto a private terrace with its own geothermal pool, accessible without stepping back inside.
Travelling solo? A Seascape or Lava View suite offers strong sightlines and swift spa access.
As a couple? The Lagoon Suite, for that direct plunge from terrace to water.
With family or friends? Moss suites or interconnecting rooms provide breathing space.
What else is there to do nearby?
Lava trails fan out from the property itself. The Reykjanes loop delivers coastal drama with cliffs, lighthouses and geothermal vents like Gunnuhver. Reykjavík, an hour north, supplies galleries, restaurants and whatever urban energy you are craving by then. First-timers to Reykjavík tend to loop the old town and climb Hallgrímskirkja for the view. Returnees make straight for the restaurant scene.
The hotel also arranges Golden Circle tours: Þingvellir's rift valley, Geysir's eruptions and Gullfoss in full roar – though the 300-kilometre circuit requires stamina. For something cooler, there is Þríhnjúkagígur, a dormant volcano you can descend into by harness. The magma chamber glows yellow and red, vast and hollow, one of the few places on earth where you can stand inside a volcano rather than simply on top of one.
What’s the final word?
Lagoon, spa and fine dining converge on an 800-year-old lava field, and occasionally, if the sky cooperates, the aurora appears just as dessert arrives.
Hero Image: The Retreat’s stunning surroundings, which have helped to make it a One-MICHELIN-Key hotel. © The Retreat at Blue Lagoon Iceland
