Congrats go out this week to Amanda for taking a wild guess on Iceland, and Beanie for nailing the exact location: the hot springs at Landmannalaugar, Iceland.
I had the good fortune to soak in these springs a few years ago when I toured this fantastic island. There is really nothing quite like Iceland, and within Iceland, there is really nothing quite like Landmannalaugar.
For a handful of adventurous souls, Landmannalaugar is either the start point or finish point of a six-day trek through the wilds of Iceland–past bubbling mud pits, ice caves, steaming vents, and multi-colored sands. Those who know how to live life properly ensure that the hot springs are at the end of their journey so they can lounge in the waters and wash away the pains of a long trek.
A word of warning, however. My brother and I almost lost the rental car crossing a river on the way here. A local informed us that a rental car a week gets washed away in that river. Consider yourself warned.