Where to Stay by the Blue Lagoon in Iceland!

Long ago, I wrote a post about how to fix Blue Lagoon hair ~ & it’s been one of my site’s Top 10 articles ever since….meaning: LOTS of people are traveling to Iceland & the Blue Lagoon!  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 steep ticket price to get in (55+ Euros) & spend several hours relaxing in the warm water ~ trust me, you won’t want to drive hours to your hotel!  Ideally, you’ll stay right near the Blue Lagoon: either at one of the hotels onsite, or in the nearby town of Grindavik.  

Blue Lagoon Iceland, Iceland FAQ, Where to Stay by the Blue Lagoon in Iceland, Girl Who Travels the World

The inimitable Blue Lagoon in Iceland.  Where else can you get a picture like this?

Map of Blue Lagoon Hotels

There are two hotels located right at the Blue Lagoon: one is a brand new hotel called the Retreat at Blue Lagoon ($1,000+/night) that just opened, & the other is the Silica Hotel ($550+/night).  For less expensive & cozier lodging options, head into Grindavik, which is a 10-minute drive from the Lagoon.

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

Blue Lagoon

Retreat at Blue Lagoon Iceland

Silica Hotel


Northern Light Inn

Where to Stay by the Blue Lagoon

Grindavik is the closest town to the Blue Lagoon, & is where you’ll find the widest variety of accommodations.  Plus, it’s located right on the water.  My top choice here is the lovely, family-run Lagafell Guesthouse ($54+).  Rooms are serene & white ~ & it feels very peaceful & warm 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 put on a 30-minute show! 

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My friends & I saw the CRAZY Northern Lights while staying at Lagafell Guesthouse in Grindavik. Hotels in & around the Blue Lagoon can be a hot spot for seeing the Northern Lights…which is another great reason to stay nearby.

Another great option for accommodations near the Blue Lagoon is the Northern Light Inn ($200+), which is just 2 kilometers away.  Here, you’re close to the Lagoon, in charming rooms…with a large viewing balcony just in case the Northern Lights decide to make an appearance.  They also offer a shuttle to the Lagoon, free breakfast buffet, & a spa with saunas & steam baths ~ in case you want to keep your relaxation journey going…

Where to Stay by the Blue Lagoon in Iceland!

I hope you’ve enjoyed this guided tour of hotels near the Blue Lagoon!  Hopefully it saves you some leg-work.  Let me know how it goes for you in the comments below.

Read Next: Top 5 Best Waterfalls in Iceland

xoxo Noelia