Palace Elisabeth, hvar heritage hotel

Built at the turn of the 20th century, The Palace Hvar is the oldest hotel on the island. Seemingly rising up from the stone of the plaza foregrounding it, the hotel's exterior is all Renaissance elegance. However, the rest of the property ranges from sleek and modern to tired, with very few spaces falling somewhere in the middle. The lobby has modern gray wicker furniture against a white coffered ceiling and an exposed stone wall, but the rooms and indoor dining area are plain at best. The outdoor terrace, however, has stunning sea views and though old-fashioned, charming white wrought-iron chairs and checkered tablecloths amid hanging flower baskets. The Palace is spread out across different levels, all accessible by stairs, so guests with mobility issues might want to look elsewhere. Most guests are couples or groups of friends who care more about the strategic location than the disappointing rooms.

It's hard to beat this hotel in terms of location: The Palace Hvar is set on the Pjaca, a beautiful, palm tree-studded pedestrian square -- the largest in Dalmatia -- that looks out onto the harbor. Surrounded by gorgeous Gothic and Renaissance buildings, the hotel is within walking distance of the town's main tourist attractions: It's one minute to the fortress, two minutes to St. Stephen's Cathedral, and 10 minutes to the arsenal. It's also just a six-minute walk from the beach. However, being in the center of town and surrounded by restaurants and bars, does lead to some guests complaining about noise. Guests taking the ferry from town only have a three-minute walk before they're at the hotel's front doors. It's about a two-hour journey to Split's airport by car and ferry. 

The hotel's 73 rooms don't live up to the palace name, with decor in need of a refurbishment. The tan and white color scheme is plain; furniture is cheap-looking; and there's visible wear throughout. However, they're comfortable and come with air-conditioning, ceiling fans, minibars, small flat-screen satellite TVs, and desks. On the downside, no safes are provided. Rooms facing the bay (or better yet, with a balcony) not only get great views during the day, but especially at sunset. Conversely, some of the city-view rooms include views of a wall next door. Bathrooms are a good size in upper-tier rooms, but, in need of renovation (though some might find the all-pink or mint-green tiles genuinely charming in a retro way). In the standard rooms, there's barely enough room to move around, and the shower is a small, curtained-off square in the corner. Each is stocked with toiletries and a hairdryer. 

The property's wine bar, which also serves small plates, is a real gem. It spills out from a terrace overlooking the marina to a garden section, as well as an indoor room with a decidedly modern-study feel due to minimal all-white furniture alongside wood-paneled walls and ceilings. The San Marco restaurant serves Croatian and Italian dishes on red-and-white checkered tablecloths under the terrace's whitewashed wood-beam ceiling (more seating available in an unshaded section as well). The food is good, but the view is the main selling point since there's so much competition nearby. Guests can have their free breakfast here in the mornings as well. 

A well-maintained outdoor pool is small (don't rely on it for a poolside holiday), lined with white modern loungers but no umbrellas. Free Wi-Fi is available throughout the property. A free parking lot is located about a 15-minute walk away (the hotel's location is in a pedestrian zone).