With 'bags of character', this converted 19th-century sponge trading post is 'in many ways the perfect small Greek island hotel', according to a visitor. It stands, overlooking hills, in the tiny streets behind the harbour of the capital of this beautiful car-free island. Reception is in a huge atrium with open fire and grand piano. Staff are thought 'first rate'. 'Bedrooms have whitewashed walls, high ceiling, white muslin curtains. 'Our pleasant, simple room off the courtyard was available only for three days. On our last night, we were moved to a two-level room with a futon-like bed on a platform, and a shower room down precipitous steps. They told us: “These rooms are really for our younger guests.”' Bathrooms have recently been renovated, and some rooms now have tubs. Tables and chairs for summer meals stand by the large, deep swimming pool ('the only full-sized hotel pool on the island') in a 'charming' walled garden with bougainvillaea, oleanders, jacaranda, cypress trees and amphorae. 'Too few sunbeds — you have to be nippy to get one in the morning.' The restaurant is said to be 'one of the best on Hydra', and the buffet breakfast is 'superb'. You can dine around the pool or if it's cooler in the pleasant dining room. The menu offers traditional Greek and Mediterranean cuisine.