Where to Stay by the Blue Lagoon in Iceland
Long ago, I wrote a post about how to fix Blue Lagoon hair ~ & its been one of my top articles ever since. Meaning: lots of people are traveling to Iceland! So I decided to write a companion piece discussing where to stay by the Blue Lagoon. Because here’s the thing: if you pay the ticket price to get in (55+ Euros) & spend several hours relaxing in the lagoon’s warm waters ~ trust me, you won’t want to drive hours to your hotel!

The inimitable Blue Lagoon in Iceland. Where else can you get a picture like this?
It’s ideal to stay right near the Blue Lagoon: either at one of the hotels on-site, or in the nearby town of Grindavik.
Map of Blue Lagoon Hotels
There are two hotels located right at the Lagoon: Retreat at Blue Lagoon ($1,000+/night), & Silica Hotel ($550+/night). We’ll discuss each below, & also provide less expensive options.
Blue Lagoon
Retreat at Blue Lagoon Iceland
Silica Hotel
Grindavik
Northern Light Inn
Staying at the Retreat at Blue Lagoon
Both on-site hotels at the Lagoon are expensive. But in return, they give you the once-in-a-lifetime opportunity of staying at this iconic spot. One is a brand new hotel called the Retreat at Blue Lagoon, & the other is also-new Silica Hotel. Each offers complimentary access to the Blue Lagoon, has beautiful & modern accommodations, & jaw-dropping, front-row seats to this Icelandic wonder.

The Retreat at Blue Lagoon is the newest (& most expensive) hotel located right at the Blue Lagoon.

The Retreat is an architectural marvel: cut right into stone surrounding the Lagoon. Photo by Arch Daily.

Rooms are sleek, modern, & high-tech. With many, you can step out your door right into the Lagoon…Photo by the Blue Lagoon.
Special Feaures of the Retreat at Blue Lagoon:
- This is the only hotel located right by the Lagoon entrance; Silica requires a slight walk.
- There are 60 rooms, & ALL are suites;
- Rooms feature floor-to-ceiling windows, free-standing tubs (for more bathing time), terraces, & almost all have Lagoon views;
- You can enjoy 24-hour room service here, or dine in their panoramic restaurant;
- Gourmet breakfast is included in the price ~ as is “Icelandic Coffee Time,” Morning Yoga, free parking, & your Blue Lagoon entrance fee;
- There’s a subterranean Spa (one of few in the world) & a fitness center on-site. At the Spa, I suggest trying their idyllic “In-Water Massage.” Heavenly.
- All ages are allowed at the Retreat at Blue Lagoon ~ but kids can’t stay on ground-level rooms due to safety issues & direct access to the warm waters. (Kids under 2 aren’t allowed in the Blue Lagoon at all.)
Staying at the Silica Hotel…

Silica Hotel also has direct access to the Lagoon, with slightly more modest rooms.

Enjoy a beautiful breakfast with lagoon views…Photo by Audrey Travel UK.

Room with a view. Photo by Audrey Travel UK.
Special Feaures of the Silica Hotel:
- There are 35 rooms, & while not all are suites ~ all rooms have verandas….but only some have Lagoon views.
- This is an Adult’s-Only resort, so no kids under 18 allowed;
- Breakfast is included in the price, as is your Blue Lagoon entrance fee;
- Beauty treatments, massages, a gym, & bistro are all available at the hotel….& they have their own geothermal lagoon as well.
- Because Silica Hotel has its own private geothermal pools, which are separate from the “main” Blue Lagoon, you can experience a much quieter scene here….& you may even have the Lagoon to yourself at night!
Where to Stay in Grindavik
Grindavik is the closest town to the Blue Lagoon, & where you’ll find the widest variety of accommodations ~ that are much cheaper than the first two options. And, it’s located right on the water. My top choice here is the lovely, family-run Lagafell Guesthouse ($54+). Rooms are serene & white, & it’s very peaceful & warm here after being out in the cold. I stayed here both solo & with friends; they have single, double, & triple rooms.
And as a HUGE bonus, on our last night here, we saw the Northern Lights!

I’ve stayed at the Lagafell Guesst House in Grindavik many times & found it lovely, safe, & cozy!

My friends & I saw the CRAZY Northern Lights while staying at Lagafell Guesthouse in Grindavik…which is another great reason to stay near the Lagoon.
Another great option for accommodations is the Northern Light Inn ($254+), just 2 kilometers from the Lagoon. You’re so close to the Blue Lagoon here ~ but for a much more reasonable price, with charming rooms & a large viewing balcony in case the Northern Lights make an appearance. They also offer a shuttle to the Lagoon, a free breakfast buffet, & spa with saunas & steam baths ~ in case you want to keep the relaxation journey going…

Max’s Restaurant at the Northern Light Inn has great views, & is a lovely spot to relax after being in warm waters all day.

This can be your view! Photo by the Northern Light Inn.
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