'Pleasantly situated' on the Bay of Gruz, three kilometres from Dubrovnik Old Town, this small luxury hotel is a conversion of a family home built in 1573. Now owned by a Swedish investment bank, it was recently renovated. 'It has a special quality and atmosphere not easy to come by. Everything is of a high standard. Lovely room, sitting areas, pool and restaurant all looked over by friendly staff aiming always to please. We had some good meals both inside and out. Breakfasts were memorable, offering excellent choice, and beautifully served.' At the rooftop swimming pool you can order a drink from the bar while lounging under a parasol. Or you can visit the beach nearby. A speedboat is available for trips to local islands. 'We spent a week and rate it highly.' Graham and Elizabeth Collingham)