Torel Palace Lisbon

Arguably Lisbon’s most understated palace hotel, the Torel Palace lies just a little ways off the usual tourist path, near the top of the lovely Torel Garden. It’s an under-the-radar gem with excellent views over Lisbon’s historic center and a connection to some living, authentic neighborhoods.

It began life, improbably, in the midst of the 2008 financial crisis, when a Portuguese banker quit his job to renovate a 1904 mansion and turn it into a B&B. It opened with 10 elegant rooms, quickly made a name for itself, and expanded to fill three historic buildings with 25 rooms with individual decoration inspired by the Kings and Queens of Portugal.

That banker went on to join forces with two Austrian entrepreneurs to maintain that hotel and develop others under the Torel brand (see Torel Avantegarde, Torel Palace and Torel 1884 Suites & Apartments) . Perhaps because of their outsiders’ perspective, they pay an especially beautiful homage to all things Portuguese—starting with the creativity of designer Isabel Sá Nogueira.

The pool is one of the prettiest places to swim in all of Lisbon, and the terrace around it is a calm place to sip a cocktail. The restaurant, Cave 23, is an ambitious one, serving nine-course tasting menus for diners who want to “expect the unexpected.”