3 Best Hotels in Santa Cruz La Laguna, The Highlands

Magnificent views are the big draw at this rustic retreat. Rooms, in several wood-and-stone bungalows, are small but neat. The delicious home cooking is served family style in the main building, which resembles a New England farmhouse. The menu ($) changes constantly, but each meal comes with fresh vegetables and bread hot out of the oven. Electricity is solar-generated, with gas used to fuel the supply of hot water.

A series of A-frame cabins climb the hillside garden here up from the hotel's private dock. (The views are lovely, but the walk can be bracing.) Inside the cabins, expect rustic wood and blindingly white walls decorated with primitivist art. We like the whimsical, partially open bathrooms. (A hummingbird might be your companion in the shower.) You'll receive a 10-percent discount if you pay in cash. Thursday evenings this becomes one of Santa Cruz's places to hang out. The folks here present a weekly documentary film. The Q20 admission includes the price of one beer or herbal tea.

The traditionally backpacker-oriented "Lost Iguana" is part hotel and part summer camp. It hasn't forgotten its roots, but has upgraded some of its offerings, which range from simple to splendid. The restaurant ($) serves up good family-style meals, and the dormitory rooms can hold up to eight of your traveling companions. For a bit more privacy, choose one of the stone-floor, thatch-roof bungalows—each has its own balcony—lit with kerosene lamps. (Even the nicer rooms are a good value.) Guests tend to be fairly young—most come for scuba-diving courses. You can also choose between Spanish, art, or weaving classes, too.

Stop by for the Saturday-night barbecue, even if you aren't staying here.