Inside the Most Expensive Hotel in Iceland

BY MARK CHESNUT

I usually can’t say that I’ve stayed in the most expensive hotel in any nation. But in Iceland, I had the good fortune to do just that, as I checked into the Retreat at Blue Lagoon, a unique hotel near Reyjavik that makes the most of the destination’s dramatic natural beauty.

I’ve already written about this outstanding hotel in my report about luxury travel in Iceland, for TravelAge West, and I’ll also share information about it in my larger feature that will run in Passport Magazine in a few months. But I found this hotel so memorable that I decided it’s worth sharing my Instagram Reel here, to take you inside. (Click on the link or scroll down to see my video tour of the Retreat at Blue Lagoon.)

Nestled amid Iceland's rugged volcanic landscape, The Retreat at Blue Lagoon is more than a luxury hotel; it's a serene sanctuary where travelers can benefit from nature's geothermal wonders while also indulging in modern luxury — including stylish and comfortable accommodations, excellent cuisine and attentive service. It’s a short drive from the Reykjavik airport and about 45 minutes from the city of Reykjavik, which makes it easy to combine even a brief stay at this hotel with sightseeing and hotel stays elsewhere on the island.

The biggest benefit of staying at The Retreat lies is the access it offers to the Blue Lagoon, an iconic geothermal spa. Blue Lagoon is open to the public, but if you’re staying at the hotel, you’ll have more time to enjoy its services and also to partake in exclusive spa services not available to day visitors.

The lagoon's milky blue waters are rich in silica and minerals, offering therapeutic benefits for both body and mind. As a guest of The Retreat, you can enjoy the lagoon's healing properties in a secluded, exclusive setting. I found it supremely relaxing to soak in the warm waters, surrounded by the breathtaking Icelandic scenery. Your Instagram account will certainly benefit from a lot of inspiring visuals during your visit (I know my Instagram did). 

The Retreat's accommodations are designed for relaxation, and I found my room to be quite comfortable and attractive. I especially appreciated that the rooms are furnished in a way that you can easily appreciate the memorable views; from the balcony or from the bed, I could gaze out at the volcanic rocks and soaring mountains in the distance.

I also found the Retreat's culinary offerings to be exceptional. The hotel's restaurant, LAVA, showcases the best of Icelandic cuisine, with a focus on fresh, locally sourced ingredients. From succulent seafood dishes to hearty stews, the menu offers something to satisfy every palate, and it was a perfect introduction for me. The restaurant's innovative approach to Icelandic cuisine, combined with its stunning views of the lagoon, makes for a truly memorable dining experience.

The Retreat offers a variety of wellness and relaxation amenities. The hotel's spa, for example, features a range of treatments, including massages, facials, and body wraps. Experienced therapists use natural Icelandic ingredients to create customized treatments that promote relaxation and rejuvenation. In addition, hotel guests can participate in yoga classes, meditation sessions and guided nature walks.

I, for one, found it peaceful to simply stand on the small rooftop deck and enjoy the silence and the panoramic vista of the rugged landscape.

Another positive: the Retreat is committed to environmental sustainability and social responsibility. The hotel's geothermal energy sources and eco-friendly practices help to minimize its impact on the environment. The Retreat also supports local communities and initiatives, contributing to the sustainable development of the region.

The Retreat at Blue Lagoon is more than just a luxury hotel in Iceland; it’s a destination unto itself, part of a complex that most people visit using day passes to enjoy the geothermal waters. Staying at the hotel is a way to enjoy the facilities even more. 

While it’s not an inexpensive accommodation option (the smallest rooms start at just over $1,400 a night), I found the Retreat ideal for immersing myself in Iceland’s natural beauty while indulging in unique spa treatments and experiences. For those with a budget that fits the room rates — even if it’s just for one night, which is how I did it — the Retreat can easily provide some of the most unforgettable moments of an Iceland vacation. There are lots of hotels in Iceland, of course, but none are quite like the Retreat.