The Retreat at Blue Lagoon Iceland: Subterranean luxury sanctuary carved into an 800-year-old lava field in Iceland with private geothermal lagoon and Michelin-starred Moss

Carved directly into an 800-year-old moss-covered volcanic lava field on the Reykjanes Peninsula in Grindavík, Iceland, The Retreat at Blue Lagoon opened in 2018 as an architectural masterwork. Designed by Basalt Architects and Design Group Italia, the 60-suite luxury sanctuary is surrounded by the milky-blue, mineral-rich geothermal waters of the Blue Lagoon. Low-slung modernist concrete architecture, charcoal volcanic rock walls, floor-to-ceiling glass, and a private subterranean Retreat Lagoon offer total seclusion in one of the world’s most otherworldly geological landscapes.

Arrival introduces travelers to the raw elemental magic of Iceland: personal hosts welcome guests across the volcanic lava bridge with herbal Icelandic teas. Day-one logistics focus on coordinating volcanic and geothermal pursuits: swimming in the private secluded waters of the Retreat Lagoon (away from public day visitors), private guided hikes across active volcanic craters and moss fields on the Reykjanes Peninsula, helicopter tours over glaciers and waterfalls, and reserving dinner at the Michelin-starred Moss Restaurant.

Sanctuary wellness and dining are monumental: The Retreat Spa is carved deep underground into the volcanic rock, featuring subterranean steam caves, a lava spring, in-water massage therapies, and the transformative Blue Lagoon Ritual (silica, algae, and minerals). Dining spans Michelin-starred modern Nordic gastronomy at Moss Restaurant (led by Chef Agnar Sverrisson), fresh Icelandic seafood at Lava Restaurant, and afternoon tea in the Retreat Lounge.

Accommodations comprise 60 suites ranging from 40-square-metre Moss and Lava Junior Suites to 60-square-metre Lagoon Suites. Lagoon Suites feature their own private geothermal water lagoons extending directly from the floor-to-ceiling glass terrace, king beds, freestanding bathtubs, and custom Blue Lagoon skincare amenities.

Design purists, wellness seekers, and couples seeking private geothermal lagoon access, Michelin-starred Icelandic gastronomy, and subterranean lava spas should book The Retreat without hesitation. Travelers seeking conventional downtown city hotels or budget airport motels should look elsewhere. Grounded review consensus confirms legendary standing with a 4.8 out of 5 on Tripadvisor across 1,120 reviews and a 4.7 out of 5 on Google across 980 reviews.