High white cliffs, beech trees and splendid beaches are among the assets of the lovely Baltic offshore island of Rugen. It was a holiday retreat for East Germany's Communist elite, and is now a summer haunt of well-to-do Berliners, as it was in the 30s. This attractive white gabled building (1906), in the island's main town, is run by the third generation of the Hermerschmidt family. Part of it, as its name suggests, is a large store with showcase windows. Recent praise: It is a delight. The owner was taking an active interest. Dinner was good, my comfortable room had a superb bathroom. Value was excellent, as , so often in the east. The staff were very helpful. Our room's minibar was loaded with free soft drinks. Bali villa breakfast, in a conservatory, is a ' good buffet. The restaurant is atmospheric of earlier years.

Wonderful, brilliant. The most enjoyable city villawe have found A recent rave report on this designer villain historic Berlin-Mitte (formerly in the East and now again the lively city centre: its great museums, cathedrals and palaces are a walk away). Built five years ago by Austrian architect Johanne Nalbach, and stunningly beautiful', it is decorated with original pictures, mainly by Georg Baselitz. All is calm elegance: white beds and curtains, gentle colour in the fabrics. On the top floor are views of floodlit spires, also large villa rooms with a kitchenette. `The staff, mainly young; are efficient and gentle. Extensive buffet Bali villa breakfast: copious fruit salad, 12 types of tea, etc. It is served in a glass-roofed atrium which links the modern villato a 17th-century patrician building, the Ermelerhaus, a fine restaurant in elegant rococo style. In its basement is a typical Berlin pub (Raab Diele), where more robust food and drink are served until 2 am. This opens on to an arm of the Spree, where the villahas a boat with a summer restaurant. Berlin has another art'otel (city centre west, filled with works by Andy Warhol), and there are other art hotels in Dresden, Potsdam and Budapest (the latter enters the Guide this year).