This iconic and much-loved cliff-top hotel in Medlow Bath, reopened in late 2014 after being closed for several years, has beautifully recaptured its former art deco splendor. Built in 1904 by Sydney businessman and former department store owner Mark Foy, the property was Australia's first health retreat. No expense was spared, and Foy filled the hotel with artwork from around the world. The dome of the hotel's Casino Ballroom was made in Chicago and shipped to Australia. The Hydro (as the hotel was later affectionately known) was a favorite with honeymooners from the 1930s to the 1950s, but by the late 1970s, signs of wear and tear were showing, and the building fell into disrepair for more than a decade. Once more, it is a destination hotel. The heritage rooms are small, but a stay here is more about enjoying the atmosphere and views over the Megalong Valley. Sit down for at least one wonderful high tea in the Wintergarden restaurant, which also serves dinner. The delightfully decadent
Salon du Thé, whose name is more French than the menu, also serves tea and Chinese dumplings on weekends, and the Boiler House and Pavilion both do a good-value casual lunch, all with knockout views. Cat's Alley, a long corridor furnished with original art deco sofas, is a great place for a sunset cocktail—tables 100 and 110 have the best view.