Blue Lagoon plots further hotel expansion in Iceland

International news
Iceland's Blue Lagoon is plotting further hospitality expansion, with a second Retreat-branded hotel expected to open in the highlands of Iceland by 2027.

Blue Lagoon said the new hotel will be located in a mountain destination that's relatively close to the company's Highland Base at Kerlingafjöll resort that opened last July.

The adventure-focused Highland Base concept includes a hotel as well as a mix of lodge, hostel, hut and campsite accommodations. The complex, which is home to the Highland Baths geothermal waters, is situated in "a very remote part of the country," said a Blue Lagoon spokeswoman.

From Reykjavik, the trip to Highland Base takes approximately three and a half hours via car or bus, with unpaved roads as part of the route.

Along with the Highland Base property, the new Retreat hotel will join the original 60-room Retreat at Blue Lagoon Iceland as well as the Blue Lagoon's 35-room Silica Hotel.

The expansion comes as Blue Lagoon makes enhancements to its flagship geothermal spa and hospitality venues, even as the iconic attraction continues to grapple with sporadic closures amid a period of significant volcanic activity.

The Silica Hotel will be getting a refresh expected to be completed by the end of this year.

By Christina Jelski