The three-year renovation of this stunning 1850s mansion on the hillside of Santa Teresa created one of the most tranquil locations to be found in the city. Opened in 2008, the Hotel Santa Teresa's 44 rooms reside behind an enormous wooden door on the main road, with stunning views across Guanabara Bay to the Petropolis mountains or back to Cristo Redentor. The restaurant is excellent, the bar offers a wonderful setting for a sunset caipirinha, and the spa service is comprehensive, all within one of the city's most charming and traditional neighbourhoods. Breakfast (R$70) is not included.

• Featured in Time Out Rio's 15 Coolest Places to Stay