Expansive grounds surround this historic palace immortalized in the Sound of Music, and the smart, freshly renovated rooms are surprisingly modest in price. Originally built in the 18th-century for Archbishop Leopold von Firmian, in 1918 it became the summer residence of Max Reinhardt, founder of the Salzburg Festival. Today, you can marvel at the mirrors of the Venetian Room and the space furnished as an exact copy of the St. Gallen monastery library. Coffee and a slice of homemade cake, or a glass of locally produced wine, is best enjoyed on the enchanting terrace overlooking the peaceful lake and jagged Untersberg mountains. The historic Meierhof building offers elegant, modern rooms embellished with refashioned artifacts recently discovered in hotel storage, and Sound of Music fans can stay in a special wing adorned with movie and stage memorabilia and information.