1. Retreat at the Blue Lagoon
The famous Blue Lagoon, a steam-shrouded, mineral-rich, lake-sized natural hot pool, features on every Iceland itinerary and can consequently feel a bit overcrowded and institutional. The stunning Retreat nearby offers the select few who can afford it an alternative: a private bathing lagoon of their own, along with a spa complete with lava-heated steam room. The design is soberly stylish, the atmosphere serene (no TVs!) and the ethos eco-friendly, and all the supersleek rooms offer dramatic views through picture windows.
Best for: Easy access to the hot springs.
Budget range? Spend more to do Iceland the right way.