Palacio Astoreca Hotel, Valparaiso, Chile

Valparaiso's steep landscape and vibrant local architecture make an ideal home for this distinctive building, recently converted into a 23-room hotel by local architects Mathias Klotz, Renzo Alvano and Pablo Riquelme. One of the city's most iconic monuments, Astoreca Palace was built in 1923 by a Croatian émigré to oblige his English wife. After several changes of ownership it ended up in the hands of Swiss-Chileans Vincent Juillerat and Francisca Joannon. The two-year revamp placed European and Chilean aesthetics in eclectic contrast: original parquet flooring, hand-painted ceramic tiles and contemporary wallpaper are accessorised by pillows, rugs and blankets woven by artisans in the Andes foothills. Highlights include the library and in-house seafood restaurant.