Iceland’s Blue Lagoon is set to expand its hospitality offerings with the opening of a second Retreat-branded hotel in the highlands of Iceland by 2027. This new hotel will be located in close proximity to the company’s existing Highland Base at Kerlingafjöll resort, which opened last July. The remote mountain destination will offer guests a unique and immersive experience in the Icelandic wilderness.
The new Retreat hotel will be situated in a remote area of Iceland, approximately three and a half hours away from Reykjavik by car or bus. The journey will take guests through unpaved roads, adding to the sense of adventure and exclusivity. The Highland Base already offers a range of accommodations, including a hotel, lodge, hostel, hut, and campsite, making it an ideal location for travelers seeking a variety of experiences in one destination.
In addition to the new Retreat hotel, Blue Lagoon is also making enhancements to its flagship geothermal spa and existing hospitality venues. The Silica Hotel, with its 35 rooms, is undergoing a refresh expected to be completed by the end of this year. Updates include upgraded changing facilities, gender-inclusive locker rooms, and new water experiences such as a cold plunge, sauna, “steam cave,” and two massage waterfalls. The welcome house arrival area is also being revamped to better integrate with protective barriers against potential lava flows, with a projected opening by the end of next year.
Despite the expansion plans, Blue Lagoon continues to face sporadic closures due to significant volcanic activity in the region. The company must navigate these challenges while seizing opportunities for growth and development in a competitive hospitality market. By offering unique experiences, enhancing facilities, and embracing the natural beauty of the Icelandic landscape, Blue Lagoon aims to attract visitors seeking luxury, adventure, and relaxation in one of the world’s most awe-inspiring destinations.
The expansion of Blue Lagoon in Iceland signifies the company’s commitment to providing exceptional experiences for guests in a truly remarkable setting. With a new Retreat hotel in the highlands and ongoing enhancements to existing properties, Blue Lagoon is poised to capture the imagination of travelers looking for something beyond the ordinary. As the iconic attraction evolves and adapts to changing conditions, it remains a beacon of luxury and tranquility in the heart of Iceland’s rugged wilderness.