Palácio dos Melos
Built right into the town walls and dating to the 16th century, this stone-walled edifice exudes historic charm. The rooms in the older part of the building are the most atmospheric, with high ceilings and towering windows with views of the town. You can also enjoy the hotel's delightful garden with its 18th-century chapel, accessed via a catwalk across the top of the old town gate.
