This hotel received an award for its conversion of a 19th-century sea-sponge industry building and we'd say they deserve one for hospitality as well. It retains the traditional Hydriot architecture, with liberal amounts of wood and high ceilings and also has a pool in the courtyard garden beside a wisteria-shaded breakfast area. Rooms can be small, but most of the guests end up spending their time outside, in the serene courtyard, which feels like its a world away from the bustle of Hydra. One final perk: the beds are unusually comfortable, with soft sheets and top–quality mattresses. A real find.