Melbourne's tiniest and possibly quaintest hotel occupies a converted 1850s bakery and 1906 baker's house. The six beautifully furnished rooms have private or en suite bathrooms and are decorated with artworks from around the world. The Spencer and Flinders rooms have 12-foot-high ceilings; all guest rooms have the latest digital TVs, iPod docking stations, and free Wi-Fi. There is a welcoming guest lounge with TV and books. Served in the original bakehouse, with its exposed red-brick bread ovens, the homemade breakfasts—including fruit, smoked salmon, sausage, bacon, eggs, and toast—are a real highlight.