Here “Palace” really isn’t an overstatement. The Pestana Palace, located in a tony residential district just outside the city center, occupies the grounds of a century-old estate, a manor house (with modern additions) surrounded by lush gardens — not quite the most convenient hotel option for getting out on the town, but more than worth it in terms of pure old-world luxury. It’s what you’d have to call a luxury boutique; though not terribly small, it’s a one-off, and the experience is a rich one, thanks to the unique city-estate setting and to the incredible amount of historical detail. Some old palace hotels feel like museums, with an atmosphere somewhere between sad nostalgia and outright decay. The Pestana Palace, however, has none of this, and manages to feel at once deeply traditional and completely alive. For that you can thank the massive renovation. Rooms in the old villa are cleaner and brighter than ever, but haven’t lost an ounce of character; rooms in the modern additions are in keeping with the style, but are slightly more contemporary, as they should be. The suites are absolutely lavish, almost over-the-top, while the grounds offer all guests the same charms: an outdoor pool, a spa and fitness center, and the Valle Flôr restaurant, a traditional Portuguese restaurant with a view of the estate’s sprawling gardens. ...