Palacio Astoreca

This freshly painted red and white 1920s mansion (it has just undergone two years of renovations) sits atop a hill in the city's Cerro Alegre neighbourhood looking over the tumbling urban scene towards the busy Valparaiso Bay.

Twenty three rooms laid with original parquet floors have been spruced up with stylish wallpaper and minimalized with modernist furniture and fixings, huge beds and contemporary art pieces dotted here and there. One of the hotel's most talked about features is the on-site Alegre restaurant manned by chef Sergio Barroso (with stints at El Bulli), and is one of the best dining experiences in the city and a favourite with more affluent locals.

The service is exemplary and there's even a spa built of dark slate housing a steam bath, indoor pool, massage rooms and a hot tub to enjoy after a hard day’s scaling the city's streets.