In a gem of a Cotswold town, with its green verges, galleries and tea shops, a honeyed-stone house is home to this first-class restaurant with rooms. It was once a workshop for Sir Gordon Russell, pioneer of wartime utility furniture, who grew up at the Lygon Arms. A lover of good design, food and wine, he would be in his element. The seven bedrooms here are as carefully crafted as the food which features on Sam Parsons' modern British menus downstairs, and blend original 17th-century features with contemporary comforts. The best are under the eaves, with original beams, exposed stone walls, wood floors, and views of the Cotswold hills, but all rooms are light and spacious. Even the smallest have window seats and armchairs, contemporary furnishings and splashes of colour in suede headboards and velvet armchairs as well as natural-stone bathrooms. In the stylish, beamed restaurant with sea-blue banquettes, or outside, you can feast on dishes that might include pan-fried halibut with brown crab hollandaise and white crab tian – or go for the more rustic version at Russell's Fish and Chips. 'Breakfast is fabulous and generous' too. (Dan Brewin)