Generally considered Dubrovnik's smartest and most expensive restaurant, Nautika lies close to Pile Gate, just outside the city walls. It occupies the former Nautical Academy building, dating from 1881, and has two terraces overlooking the sea. Although some people feel that it is overpriced, it remains a sound choice for business lunches and formal celebrations. The restaurant serves shellfish, lobster, and fresh fish, as well as meat dishes, and has an excellent wine list. Definitely the place to see and be seen.