2 Best Hotels in Grindavík, Reykjanes Peninsula and the South Coast (with the Golden Circle)

One of the most luxurious accommodations in the entire county, the Blue Lagoon's Retreat Hotel offers true serenity set among understated luxury. Carved directly into a centuries-old lava flow, the high-end abode offers a subterranean spa and Michelin-starred dining right on-site. Guests have unlimited access to the spa's private lagoon as well as additional access to the public Blue Lagoon. Rooms overlook either the lagoon or stunning volcanic rock formations; some even have their own private hot pools. They also come equipped with luxe linens, a complimentary minibar, walk-in rainfall showers, and high-end Blue Lagoon toiletries. A delicious breakfast is available daily as are yoga classes and an afternoon Icelandic coffee service. 

Set directly into Reykjanes's famed moss-covered lava fields, the Silica Hotel offers a tranquil retreat just minutes away from the Blue Lagoon. Expect high-end, Scandinavian-style furnishings paired with spectacular views of the countryside.