The Retreat at Blue Lagoon: A Hotel Carved into Silence and Steam

Some places don’t ask to be visited. They stay with you from afar—through an image, a texture, a color that lingers. 

In the southwest of Iceland, where steam rises from lava fields and the land breathes warmth, a structure disappears into the earth. It’s warmed by geothermal water, shaped by volcanic rock, and surrounded by water the color of moonstone. 

For me, it was one of them—The Retreat Hotel at Blue Lagoon.

The southwest of Iceland is unlike anywhere else. The land feels alive, warmed from beneath, and shaped by ancient forces. This is the Reykjanes Peninsula, a UNESCO Global Geopark, and home to one of the country’s most iconic natural phenomena: the Blue Lagoon.

Fed by geothermal seawater enriched with silica, algae, and minerals, the lagoon stretches across the rugged landscape like a sheet of pale blue glass. Long believed to have healing properties, the water feels soft and steady—inviting pause.

It’s here, settled into this raw landscape, that The Retreat was built. Not above the land, but as part of it. Everything reflects its surroundings: rough-textured stone, low tones, and materials that echo the terrain. Floor-to-ceiling windows pull in the light, while a private lagoon curves along the building like an extension of the earth.

Guests move between inside and outside almost without noticing—through warm mist, across smooth stone, and into water that holds the body like it belongs there.

At The Retreat, architecture doesn’t try to impress. It follows the land’s lead. Designed in collaboration with Basalt Architects and Design Group Italia, the hotel blends into the lava plain like a shadow.

The building is made of precast concrete, tinted to echo the surrounding stone. Some walls are off-white, others deep grey—tones chosen to work with the light and weather. Key areas, like the spa and lobby, are tucked directly into the hillside, preserving the land’s natural contours.

Inside, the design stays quiet: neutral layers, raw textures, and materials that feel grounded. Large windows frame light and sky, not decoration. It’s not architecture that seeks attention—it’s space that holds presence.

The quiet continues inside. Across 62 suites, the design doesn’t speak loudly—it lets the landscape in. Floor-to-ceiling windows offer views of lava, water, or sky. But the feeling stays the same: slow, warm, and clear.

Each suite is composed for calm—visually and emotionally. The textures echo the land: dark stone, matte walls, soft linen, and warm wood. Nothing asks for attention. Everything invites a slower pace.

Furnishings are made in collaboration with B&B Italia, blending Italian craftsmanship with Icelandic sensibility. Layouts are set to face outward, so that even from bed, you’re still part of the view.

Some suites come with private access to the Retreat Lagoon. All guests can walk directly to the Blue Lagoon through a quiet path. The transition from rest to immersion happens naturally.

If the suites are made for stillness, the spa is built for sensation. Beneath the hotel, the Retreat Spa offers a sequence of rooms that guide you through warmth, cold, and rest.

You begin in the steam cave—stone-walled and heavy with heat. Then to the lava spring, then the glacial cold well. Each shift in temperature resets the body. It’s physical, and subtle.

Beyond the core cycle, there are spaces to simply be. The Nest lounge has chairs shaped like cocoons, facing the water. You sit. You breathe. You stay. Treatments take place in quiet rooms underground, where light is low and movement slows. Some focus on skin, some on muscle. All carry the water's touch.

For more privacy, the Lava Cove offers a suite with its own geothermal lagoon and treatment space. It’s not just about wellness—it’s about returning to something elemental, one contrast at a time.

The time I spent there didn’t feel like a visit—it felt like being invited to pause. Even now, I find myself wanting to return. Not for novelty, but for the silence, the light, and the way the water made time slow down.

If you’d like to see more—how it looks, feels, or unfolds in its own words—you’ll find it on the official page of The Retreat Hotel at Blue Lagoon.

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You may also like:

– Amangiri — another hotel where land, silence, and stone set the tone

– Sandibe Okavango Safari Lodge — a retreat shaped by nature, not imposed on it

– Viceroy Los Cabos — where architecture dissolves into light and sea

*Last updated: 2025.05.19