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Laugarás Lagoon

Contrast bathing and fine dining are two USPs of a new geothermal destination in Iceland’s Golden Circle


Contrast bathing and fine-dining are two standout features of an upcoming geothermal wellness destination that’s strategically positioned on Iceland’s Golden Circle – a popular tourist route close to the capital of Reykjavik.

Due to open in Q3 this year, Laugarás Lagoon is a two-storey geothermal lagoon on the banks of the Hvitá River, which is designed to allow visitors to descend from an upper pool to a lower pool through a passage under the water’s surface, emerging through a waterfall.

The 1,000sq m bathing area will include a cold pool for contrast bathing, using glacial water from the nearby river, as well as two saunas, relaxation spaces, two swim-up bars, a 6.6-metre waterfall and a secluded grotto with seating.

Ylja, its 280sq m restaurant, is headed up by well-known Icelandic chef Gísli Matt. The seasonal menu will offer ingredients from nearby farms, fisheries and greenhouses.

“Our location, architecture, nature and culinary expertise are what sets us apart,” managing director, Bryndís Björnsdóttir, tells Spa Business. “The area is attractive to both locals and tourists and we believe it truly deserves a wider range of activities.”

Investment and pricing
Real estate company Norverk bought the plot in 2015 and appointed development firm Mannverk.

Architects T.ARK, engineering firm Efla and lighting design studio Hildiberg are also working on the project.

The modern architecture incorporates glass panels that offer sweeping views of the Hvitá River, mountains and woodland. Locally sourced materials have been combined with Iceland’s abundant geothermal energy to create the lagoon.

Hjalti Gylfason, one of the partners at Mannverk, told local media last year that the construction cost was estimated to be around ISK2 billion (US$15.6 million, €13.7 million, £11.6 million).

Laugarás Lagoon, which has the capacity for around 200 bathers, is looking to attract up to 180,000 visitors a year and will offer three packages starting at ISK 6,900 (US$54, €47, £40).

Target markets
Björnsdóttir says local residents, summerhouse owners and those living in Reykjavik will be offered membership cards for frequent visits. It will also be partnering with many tour operators to offer packages which combine a Golden Circle trip and a visit to Laugarás Lagoon.

She adds: “Our proximity to the Golden Circle is significant as guests can include a visit to Laugarás before or after marvelling at Gullfoss waterfall, Þingvellir National Park and the Geysir [geothermal area].”


Iceland is becoming known for its geothermal bathing destinations, which include the original Blue Lagoon and the more recent Sky Lagoon and Forest Lagoon.

▪︎ To read our mystery shop, which compares the Blue Lagoon and Sky Lagoon, visit www.spabusiness.com/blueskylagoons. For our report on the Forest Lagoon, go to www.spabusiness.com/forestlagoon

Read more from this issue of Spa Business magazine

View contents of Spa Business 2025 issue 2
The lagoon will take pre-bookings from 15 August
The lagoon will take pre-bookings from 15 August / photo: Laugaras Lagoon
The two tier pool includes a cooler area for contrast bathing
The two tier pool includes a cooler area for contrast bathing / photo: Laugaras Lagoon
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Project preview
Laugarás Lagoon

Contrast bathing and fine dining are two USPs of a new geothermal destination in Iceland’s Golden Circle


Contrast bathing and fine-dining are two standout features of an upcoming geothermal wellness destination that’s strategically positioned on Iceland’s Golden Circle – a popular tourist route close to the capital of Reykjavik.

Due to open in Q3 this year, Laugarás Lagoon is a two-storey geothermal lagoon on the banks of the Hvitá River, which is designed to allow visitors to descend from an upper pool to a lower pool through a passage under the water’s surface, emerging through a waterfall.

The 1,000sq m bathing area will include a cold pool for contrast bathing, using glacial water from the nearby river, as well as two saunas, relaxation spaces, two swim-up bars, a 6.6-metre waterfall and a secluded grotto with seating.

Ylja, its 280sq m restaurant, is headed up by well-known Icelandic chef Gísli Matt. The seasonal menu will offer ingredients from nearby farms, fisheries and greenhouses.

“Our location, architecture, nature and culinary expertise are what sets us apart,” managing director, Bryndís Björnsdóttir, tells Spa Business. “The area is attractive to both locals and tourists and we believe it truly deserves a wider range of activities.”

Investment and pricing
Real estate company Norverk bought the plot in 2015 and appointed development firm Mannverk.

Architects T.ARK, engineering firm Efla and lighting design studio Hildiberg are also working on the project.

The modern architecture incorporates glass panels that offer sweeping views of the Hvitá River, mountains and woodland. Locally sourced materials have been combined with Iceland’s abundant geothermal energy to create the lagoon.

Hjalti Gylfason, one of the partners at Mannverk, told local media last year that the construction cost was estimated to be around ISK2 billion (US$15.6 million, €13.7 million, £11.6 million).

Laugarás Lagoon, which has the capacity for around 200 bathers, is looking to attract up to 180,000 visitors a year and will offer three packages starting at ISK 6,900 (US$54, €47, £40).

Target markets
Björnsdóttir says local residents, summerhouse owners and those living in Reykjavik will be offered membership cards for frequent visits. It will also be partnering with many tour operators to offer packages which combine a Golden Circle trip and a visit to Laugarás Lagoon.

She adds: “Our proximity to the Golden Circle is significant as guests can include a visit to Laugarás before or after marvelling at Gullfoss waterfall, Þingvellir National Park and the Geysir [geothermal area].”


Iceland is becoming known for its geothermal bathing destinations, which include the original Blue Lagoon and the more recent Sky Lagoon and Forest Lagoon.

▪︎ To read our mystery shop, which compares the Blue Lagoon and Sky Lagoon, visit www.spabusiness.com/blueskylagoons. For our report on the Forest Lagoon, go to www.spabusiness.com/forestlagoon

Read more from this issue of Spa Business magazine

View contents of Spa Business 2025 issue 2
The lagoon will take pre-bookings from 15 August
The lagoon will take pre-bookings from 15 August / photo: Laugaras Lagoon
The two tier pool includes a cooler area for contrast bathing
The two tier pool includes a cooler area for contrast bathing / photo: Laugaras Lagoon
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ADVERTISE . CONTACT US

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Tel: +44 (0)1462 431385

©Cybertrek 2026

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