Hotels Near the Blue Lagoon
· Updated · BootsnAll
Many people ask about hotels near the Blue Lagoon in southwest Iceland.
While I personally don’t think it’s worth it to stay at one of these hotels (they, and the Blue Lagoon, are about 40 minutes from Reykjavik and they are absurdly expensive for what you get), if you plan on spending a lot of time at the Lagoon or if you want to stay out of the city without having to drive too far, (or would prefer to stay close to the airport for an early departure) then they represent a good option.
Before you book, know that the lagoon sits right next to the Sundhnúkur crater row, which erupted nine times between December 2023 and August 2025. The eruptions have forced the Blue Lagoon and its hotels to close several times, and in November 2024 lava covered the lagoon’s car park and access road. The latest eruption ended on August 5, 2025, but in September 2026 the Icelandic Met Office said magma is still building up and another intrusion, possibly leading to an eruption, is the most likely next step. Check Safetravel for the current situation.
Here are the hotels close to the Blue Lagoon in Iceland.
Hotel Keflavik is located in Keflavik town, just a few minutes from the airport and a short drive from the Blue Lagoon. The family-run, 4-star hotel, which opened in 1986, has a restaurant, a café, a cocktail bar and a spa and gym, and it is not cheap, especially if you go for one of its Diamond Suites.
Park Inn by Radisson Reykjavik Keflavik Airport
Also in Keflavik town, the old Icelandair Hotel Flughotel is now the Park Inn by Radisson, with 116 rooms and suites, free Wi-Fi, free heated indoor parking and a restaurant, the Library Bistro. It’s 5 kilometers from the airport and about a 20-minute drive from the Blue Lagoon.
The Blue Lagoon now runs two hotels of its own, and if you really want to spend significant time there, they are your best and most indulgent option. The Silica Hotel has 35 rooms, each with a veranda looking out over the lava fields, and guests get Blue Lagoon admission plus use of the hotel’s own private lagoon. The Retreat, which opened in 2018, is a five-star hotel with 62 suites, a spa, its own lagoon and a restaurant.
The Northern Light Inn
The Northern Light Inn is the closest hotel to the Blue Lagoon (other than the Blue Lagoon’s own hotels). It’s a family-run hotel with 42 rooms, a restaurant, Max’s, and a small wellness spa with saunas, a short drive from both the Blue Lagoon and the airport.
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Photo by halliew