2 Best Hotels in Santa Catarina Palopo, The Highlands

By far the best B&B on the lake, and one of the country's loveliest hotels, luxurious Casa Palopó has an almost mystical atmosphere. Each of the seven rooms in the main house, decorated with religious-theme artworks from around the world, offers incredible views of the volcanoes. Muted blues run throughout this former villa, mirroring the colors of the lake. Most baths have giant tubs perfect for prolonged soaks. Just down the road, an annex offers two equally sumptuous suites, each with its own pool and hot tub.

Villa Santa Catarina has outstanding views. The long yellow building with an adobe-tile roof has small rooms, each with a private balcony overlooking the lake. The restaurant serves international fare including pastas, sandwiches, and chicken. You can relax in the pool or head to a series of natural hot springs that are only a few hundred feet away.