Sandwiched between the mountains and the sea, this modern spa hotel is built atop the ruins of the palace where empress Zita, last monarch of the Austro-Hungarian Empire, lived out her days in exile. She couldn’t have chosen a prettier spot. The balcony looks out on the Cantabrian Sea, with the Isla San Nicolás just offshore, and the fishing village of Lekeitio off to one side. Lushly landscaped grounds make it a popular wedding and honeymoon venue; in the off season, many of the guests come for the thermal waters and thalassotherapy.