# No wonder Reykjavík is named 'The Smoky Bay' – hot water is abundant.

- URL: https://www.visiticeland.com/article/reykjavik-resorts/
- Published: 2023-12-13
- Last updated: 2026-08-19

> Iceland’s capital is surrounded by incredible places to soak, float, and recharge. From the iconic Blue Lagoon to the oceanfront Sky Lagoon and the wild beauty of Hvammsvík Hot Springs, Reykjavík’s luxury spa resorts bring Iceland’s geothermal magic within easy reach.

The Blue Lagoon famously began as a place visited by a man seeking alternative treatment for his psoriasis, utilizing the silica-rich runoff water from a geothermal power plant. In Iceland's former life as an obscure tourist destination, growth was slow by today's standards. It took developers a long time to discover that people were hungry for more upscale baths around Reykjavík. 

**Here are three top choices for luxury spas in locations near Reykjavík.**

*Image: The Sky Lagoon is accessible with local Strætó bus from downtown Reykjavik*

### **The Sky Lagoon** 

Before the Sky Lagoon opened in 2021, the tip of the Kársnes Peninsula was a suburban industrial site—a fact that's hard to imagine today. This carefully designed retreat now inspires feelings of joy, serenity, and connection from the moment you arrive.

The 75-meter (250-foot) infinity pool offers sweeping views across Kópa Bay toward the President's residence at Bessastaðir.

Designed for both relaxation and socializing, the lagoon features a waterfall, cozy nooks for quiet moments, and a lively swim-up bar, perfect for enjoying the surroundings.

At the heart of the Sky Lagoon experience is Skjól—a seven-step ritual that invites you to immerse yourself in the cherished traditions of Icelandic bathing culture.

[**Visit Sky Lagoon**](https://www.skylagoon.com)

*Image: The Hvammsvík Hot Springs, located on the family estate of entrepreneur Skúli Mogensen, has a 'hidden-place' vibe*

### **Hvammsvík Hot Springs** 

The Hvammsvík Hot Springs is the boutique option among baths. The style is country rustic, down to the detail of the shower knob, creating an intimate connection to natural surroundings. 

Eight multi-temperature baths merge with the shoreline of the quiet 'Whale Fjord'. Swimming in the sea is part of the fun, if not the therapy, and water levels at the pool closest to shore fluctuate with the tide. 

Attached to the black-barrack property is the bistro, praised for its superb seafood soup. 

Note the artwork: the bar-hanging knots are by Shoplifter and 'Cars in River' by Ólafur Elíasson on the wall opposite the reception. Both belong to the collection of Icelandic entrepreneur Skúli Mogensen, who opened Hvammsvík in 2022 on his family property.

[**Visit Hvammsvík Hot Springs**](https://www.hvammsvik.com)

*Image: Silica gives the water its milky blue-green color, which eventually precipitates as white mud on the lagoon's floor*

### **The Blue Lagoon** 

Blue Lagoon deserves credit as the architects of Iceland's spa experience. The Blue Lagoon has been Iceland's most visited destination for decades, situated in a lava field midway between Reykjavík and Keflavík Airport. 

Silica gives the water its milky blue-green color, which eventually precipitates as white mud on the lagoon's floor. Studies have shown that the lagoon's white silica-rich mud helps skin conditions, including psoriasis. 

The lagoon is vast in size, with quiet pockets despite the crowds. For an even more exclusive experience, [**the Retreat Spa**](https://www.bluelagoon.com/topics/retreat-lagoon) offers an immersive treatment that lasts hours or even days. 

The Blue Lagoon is a leading investor in other luxury baths around Iceland and is a pioneer of wellness tourism.

[**Visit The Blue Lagoon**](https://www.bluelagoon.is)