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Best New Hotels 2007: ME Madrid Reina Victoria, Madrid, Spain

Now the focal point for the revitalised historic centre of Madrid, this Belle Epoque hotel (formerly the Gran Hotel Victoria) which was a favourite haunt of Hemingway, has morphed into a sexy modern day hangout, with its uncluttered bedrooms offering a haven of luxury. And ME Madrid Reina Victoria is not just a favourite with travellers – the ground-level bar and rooftop terrace offering 360-degree views of Madrid are where you’ll find the local Madrileños hanging out, especially after dark. This is definitely the place to watch the sun go down. It’s a short walk away from some of the city’s historic attractions such as the Museum del Prado and the Puerta del Sol.

Doubles from about $435, www.solmelia.com.