Settha Palace Hotel, Vientiane - elegant with a touch of nostalgia

It may have growing ambitions but Laos is still a country where life moves at a gentle pace - and even with its brand new hotels, the capital, Vientiane, is no exception. Guests at the Settha Palace Hotel tend to relax Laotian style, in elegant surroundings with a touch of nostalgia. It is the venue of choice for a discerning elite, right in the heart of the city, and is within walking distance of the main attractions, shops, restaurants and spectacular sunsets over the Mekong (Thailand is just over Friendship Bridge). The hotel is a 15-minute drive from Wattay airport and, for just US$11, you can be greeted when you land by a vintage hackney carriage (below) and whisked across town into a private world brimming with colonial charm.

Built in the early 1930s, under French colonial rule, this glorious mansion was taken over by the new regime in 1975 and turned into social housing. The Theodas family went into exile but, on a return visit in 1992, son Billy promised his distraught mother he would restore their long neglected home to its former glory - and he did, investing much of his personal fortune in the project. After a massive refurbishment, the building has reopened as a luxury boutique hotel.

It does - from the moment you step in. The reception is spacious, but not cavernous, graced with period furniture and a prized collection of Lao artefacts. Cold towels and welcome drinks are the first signs of an attentive yet discreet service, and can be enjoyed as new arrivals sit back to appreciate the cool marble floor, the gorgeous chandelier, the rosewood counter glowing in the adjoining bar and the classical music that invites you to unwind in soothing luxury. In the landscaped garden, birds twitter among palms and tropical blooms while guests cool down in a secluded free-form pool (below) or sip cocktails on the shaded patio.

There are just 29, on the ground or first floors - but don't expect a lift. Who needs one when the original grand staircase takes you upstairs in regal style, with luggage to follow? Looking out to the pool or garden, where spirit houses ensure an auspicious stay, guest rooms are spacious and light. All of them have high ceilings and polished wooden floors, a four-poster king-sized bed (or a twin), stylish colonial decor in rosewood and ivory tones and the usual mod cons.