This hotel overlooking the Jamison Valley is steeped in history: it served as a "coffee palace" during the temperance movement, a rest-and-relaxation establishment for the British navy during World War II, and a religious retreat in the 1970s. Check out the collection of rare photographs depicting the Blue Mountains and Sydney in the 1880s. Many rooms have fanastic valley views, and several have the combination of a hot tub and a fireplace. If you're looking to splurge,
try the round Tower Suite (it does resemble an oval-shaped castle tower), or one of the two Valley View suites—each has its own veranda, kitchen, living room with fireplace, and hot tub.