Accommodations at Blue Lagoon Iceland: Silica Hotel and The Retreat

Blue Lagoon Iceland has two luxury hotels: Silica Hotel and The Retreat. Silica is a boutique hotel with a private mineral lagoon and a wellness-focused atmosphere. The Retreat is a 5-star resort with personal hosts, the underground Retreat Spa, and the Michelin-starred Moss Restaurant. Both include daily breakfast, geothermal lagoon access, and the Northern Lights wake-up call. located 20 minutes from Keflavík International Airport and 45 minutes from Reykjavík.

Where to stay at Blue Lagoon Iceland: Accommodation at Silica Hotel and The Retreat Hotel

Located in the volcanic landscape of the Reykjanes Peninsula, Blue Lagoon Iceland is home to two exceptional places to stay: Silica Hotel and the Retreat. They both have their own charm and character and offer more than just a place to sleep. They guarantee a rejuvenating experience in one of Iceland's most iconic settings.

Silica Hotel and The Retreat: An Overview

Opened in 2005 and rebranded in 2016, Silica Hotel is a 35-room boutique hotel with its own private mineral-rich lagoon, fed by the same geothermal seawater as the Blue Lagoon. Originally conceived as an overnight clinic for natural psoriasis treatments, based on the healing powers of the Blue Lagoon water, the hotel has evolved from a place of healing into a sanctuary of wellness. It's a rare blend of healthcare and boutique hospitality set just a 10-minute walk from the Blue Lagoon.

The Retreat is a 5-star luxury resort with 60 suites, located just five minutes from the Blue Lagoon. Opened in 2018, it's designed for luxury and relaxation, featuring the award-winning Retreat Spa, the Retreat Lagoon, and the Michelin-starred Moss Restaurant — the only Michelin-starred restaurant in Iceland based at a hotel. This resort is a blend of luxury, nature, and design, providing a unique experience of rejuvenation and relaxation. Guests get a dedicated personal host throughout their stay, and have a private entrance to the Blue Lagoon.

Harmony with nature: Architecture designed for the lava landscape

Both hotels are designed by Iceland’s renowned Basalt Architects, yet they offer very different experiences. Silica Hotel's architecture is a one-level structure, designed to blend seamlessly with the surrounding moss-covered lava fields. An eye-catching feature is the decorative Blue Lagoon water surrounding the premises, with each room opening onto a small terrace at the water's edge.

The Retreat Hotel, more advanced in architectural design, spans two levels built into an ancient lava plain. It merges with the landscape and includes the Blue Lagoon's geothermal waters. Some suites have direct access to the water, offering guests a private and deeply immersive way to enjoy the lagoon's benefits.

Design elements of the Blue Lagoon hotels

Silica Hotel is modern and simple in design, with clean lines and contemporary furnishings. It has a calm and minimalistic Scandinavian style.

On the other hand, the Retreat focuses on blending the inside with the outside. Its design, including shapes, patterns, colors, and materials, matches the nearby geology. This creates a sophisticated space where nature and human-made elements come together seamlessly.

Service excellence

When it comes to service, both hotels offer exceptional experiences, though their approaches differ. Silica Hotel prides itself on its 24-hour concierge service, ensuring guests have round-the-clock assistance for all their needs, including the unique Northern Lights wake-up call.

The Retreat, however, offers even more personalized service. Every guest is assigned a personal host for the duration of their stay. Whether you need a dinner reservation at Moss, a tour of the Reykjanes Peninsula arranged, or simply a recommendation, your host is always available. This, along with the Northern Lights wake-up call, ensures a very personalized and luxurious experience for each guest.

Amenities and comfort: What's included at each hotel

Silica Hotel guests have exclusive access to Silica Lagoon—a private mineral-rich pool fed by the same geothermal source as the Blue Lagoon, known for its skin-softening silica and healing properties. Guests also have access to a fitness center and a communal lounge with a fireplace and entrancing views of the moss-covered landscape. Additionally, guests receive complimentary daily breakfast and free admission to the Blue Lagoon, an amenity that can be upgraded to include the Retreat Spa.

The Retreat takes luxury to another level. Apart from a fitness center and yoga room, it boasts a library and a communal lounge with breathtaking views. But the hallmark of the Retreat experience is the Retreat Spa—a large underground area with beautiful design and natural heat. The spa journey includes various thermal areas and ends with the Blue Lagoon Ritual—a self-guided, 4-step treatment using silica, algae, and minerals, which leave your body smooth, glowing, and revitalized.

Additional perks for Retreat guests include complimentary daily breakfast and Icelandic coffee in the Retreat Lounge, further accentuating the luxurious interplay of hospitality and wellbeing. Likewise, each suite is equipped with Blue Lagoon Skin Science products, made from natural elements of the Blue Lagoon.

Fine dining at Blue Lagoon Iceland

Hotel guests have access to some of Iceland's most celebrated restaurants. Lava Restaurant, built into a centuries-old basalt cliff on the south shore of the Blue Lagoon, combines dramatic architecture, stunning views, and classic Icelandic cuisine. The Michelin-starred Moss Restaurant, occupying the point of highest elevation at Blue Lagoon, reinvents Iceland’s culinary heritage through seasonal, locally sourced ingredients. Hotel guests may also dine at Spa Restaurant in the Retreat Spa, where fresh delicacies and enchanting views of the Retreat Lagoon create a sublime experience. For light snacks and refreshing beverages, Blue Café—located in the main spa complex—is a simple, savory choice.

Commitment to sustainability: Powered by renewable energy

Both Silica Hotel and The Retreat are powered by renewable energy. All heating, hot water, and electricity come from the Svartsengi Resource Park, a geothermal power plant on the Reykjanes Peninsula. Blue Lagoon Iceland's approach to sustainability extends across every aspect of operations at both hotels, from energy use to supply chains — a genuine commitment to eco-friendly hospitality in one of the world's most ecologically sensitive landscapes.

Recognition and awards

Silica Hotel and the Retreat have both earned significant recognition in the world of hospitality. Silica Hotel has an impressive list of awards, including the Nordic Prize for Lighting in 2006, a nomination for the Mies van der Rohe Award in the same year, and the Icelandic Architecture Award in 2007. More recently, Silica was recognized in Travel + Leisure’s Readers’ Choice Awards as the Best Resort Hotel in Iceland.

The Retreat, despite being newer, has quickly ascended to the heights of acclaim. It has been listed in Time Magazine’s World's 100 Greatest Places and Fodor's Finest Hotels - The 100 Most Incredible Hotels In The World. Among its numerous laurels are Condé Nast Traveler’s Top Resorts and a host of other honors, detailed at Blue Lagoon's Awards. In the culinary arena, the Retreat’s signature restaurant—Moss—received a Michelin star in 2023. These accolades not only underline the Retreat’s excellence in hospitality but also its innovative approach to luxury and wellness.

Guest reviews on Tripadvisor for Silica and the Retreat reflect the consistently exceptional experiences guests take home.

Exploring Iceland from Blue Lagoon: Tours and activities

Both hotels are perfect starting points for exploring Iceland's beautiful scenery and culture. Guests can walk trails through the lava fields, join guided tours of Iceland's volcanic landscapes, or visit nearby cultural sites. Located in the Reykjanes UNESCO Global Geopark and just 50 minutes from Reykjavík, the capital, Silica Hotel and the Retreat are great places to stay for exploring Iceland's impressive geology and rich heritage.

Getting to Blue Lagoon Iceland from Keflavík airport and Reykjavík

Getting to Blue Lagoon Iceland from either Keflavík International Airport or Reykjavík is straightforward, offering options for self-drive and transfers. For travellers looking for accommodation near Blue Lagoon, both Silica Hotel and The Retreat are located directly on site—the closest possible base for experiencing the lagoon.

From Keflavík International Airport: Blue Lagoon is about a 20-minute drive from Keflavík, making it an easily accessible stop for those just arriving in or departing Iceland. Simply follow the signs from the airport towards Grindavík on the Reykjanes Peninsula. There are rental car services at the airport for those looking to self-drive.

From Reykjavík: The drive from Reykjavík takes approximately 45 minutes by car. You would head south on Route 41, then follow the signs to Blue Lagoon. This scenic drive offers beautiful views of Iceland’s unique landscape.

Once you’re at Blue Lagoon Iceland, getting to the world famous lagoon is quite simple. Guests of the Retreat benefit from a private entrance to the lagoon, whereas those staying at Silica Hotel can reach the lagoon with a scenic 10-minute walk through moss-covered lava fields. Additionally, Silica Hotel provides a shuttle service for convenient access to the waterscape.

Silica Hotel or The Retreat: Which Should You Choose?

The right choice depends on what kind of stay you're looking for. Both are among the finest hotels near Blue Lagoon Iceland, sitting directly within the geothermal landscape of the Reykjanes Peninsula. Silica Hotel suits travellers who want an intimate, wellness-focused experience with a private lagoon, boutique charm, and a genuine connection to the Icelandic landscape. The Retreat is the better fit for those seeking world-class luxury—a personal host, the underground Retreat Spa, Michelin-starred dining, and private lagoon access, all in one of the most acclaimed hotels in Iceland.

Both are committed to sustainability, designed with extraordinary care for their surroundings, and located perfectly for exploring Iceland—whether you're just arriving or about to head home.

Frequently asked questions

What is the difference between Silica Hotel and The Retreat at Blue Lagoon Iceland?

Silica Hotel is a 35-room boutique hotel with a private bathing lagoon and a relaxed, wellness-oriented atmosphere. The Retreat is a 5-star luxury resort with 60 suites, a dedicated personal host for every guest, the underground Retreat Spa, and the Michelin-starred Moss Restaurant. Both offer complimentary breakfast and Blue Lagoon access, but The Retreat is the more premium option in terms of service, scale, and amenities.

Is breakfast included at Silica Hotel and The Retreat?

Yes. Both hotels include complimentary daily breakfast for guests. Retreat guests also have access to Icelandic coffee and light refreshments throughout the day in the Retreat Lounge.

Do both hotels have private access to the Blue Lagoon?

Guests of The Retreat have a dedicated private entrance to the Blue Lagoon. Silica Hotel guests can reach the lagoon on foot via a scenic 10-minute walk through the lava fields, or by using the hotel's shuttle service.

Can you see the Northern Lights from Silica Hotel or The Retreat?

Both hotels offer a Northern Lights wake-up call service, so guests are alerted if the aurora appears overnight. The surrounding lava landscape, with minimal light pollution, makes both properties excellent bases for Northern Lights viewing during the winter months.

How far is Blue Lagoon Iceland from Keflavík Airport?

Blue Lagoon Iceland is approximately 20 minutes by car from Keflavík International Airport, making it a natural first or last stop on any trip to Iceland. Both Silica Hotel and The Retreat can be reached directly without passing through Reykjavík.

Is The Retreat at Blue Lagoon Iceland worth it?

The Retreat has been listed in Time Magazine's World's 100 Greatest Places, featured in Condé Nast Traveler's Top Resorts in Europe, and its restaurant Moss received a Michelin star in 2023. For travellers looking for a world-class luxury experience in Iceland, it is widely considered one of the finest hotels in the country.