The world-famous Blue Lagoon geothermal destination spa in Iceland has revealed to Spa Business that it’s investing €40m in an expansion and redesign project.

A new thermal bathing pool, built into the surrounding lava field, will connect to the existing lagoon and enlarge it by half. A luxury 60-bed hotel will also be included in the changes, as well as a refresh/upgrade of other facilities.

Sigridur Sigthorsdottir of Basalt Architects will lead the project, which is due for completion in 2017. She’s been the architect at Blue Lagoon for almost 20 years and her work in harmonising the man-made and natural environment has received international acclaim.

The Blue Lagoon, which holds six million litres of geothermal seawater, is one of the most popular tourist attractions in Iceland and last year it welcomed 766,000 visitors.

The purpose of the expansion is to enhance the experience for each guest, rather than to increase numbers, according to the spa.