Hotels in The Blue Lagoon

The Blue Lagoon is building a luxury hotel, which should be ready around 2010. Until then, your dining and accommodation options are the nearby Northern Light Inn and several places in Grindavík (6km/3 3/4 miles away) and Keflavík (20km/12 miles away). The Blue Lagoon's 15-room "Clinic" is quite the undiscovered gem and has anything but an antiseptic hospital atmosphere. It is intended primarily for psoriasis patients, but accepts other guests when space is available. The luxurious rooms all have verandas, and guests enjoy a private section of the lagoon. Rates are 17,000kr ($272/£136) for a double in high season.

The Blue Lagoon has an expedient push-your-tray cafeteria and the sit-down Lava Restaurant, which is surprisingly good and fairly priced, given the captive clientele. The broad menu has an international range, and several main courses are under 2,000kr ($32/£16). Reservations are recommended for dinner.