When this 18th-century inn, the oldest on the peninsula, reopened as a luxury hotel late in the 20th century, the U.S. secretary of state and the Netherlands' Queen Beatrix were among the first guests. The intimate rooms are bathed in light from French windows, and deluxe touches such as heated towel racks and crested linens abound. The staff can arrange anything from jeep tours to babysitting. At Lawrence's Restaurant ($$$-$$$$; reservations recommended) specialties—served on Portugal's Vista Alegre porcelain—might include fish soup en croûte (served in hollowed-out bread) with coriander, roast duck, and a dessert flambéed at your table.
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