• Pousada de São Filipe (Setúbal): During the 1500s, this structure served as a defensive link in a chain of fortresses surrounding Lisbon. Today it boasts antique azulejos (glazed earthenware tiles), panoramic views of the town, and a keen sense of Portuguese history. The rooms are simple (some might say monastic) but comfortable and tidy.

• Pestana Carlton Palace (Lisbon): One of the & grandest hotels to open in Portugal in years, this hotel lies in an upscale residential section 5km (3 miles) from the historic center. It was carved out of a former villa built in 1907. It’s a stunning example of the romantic revival architectural style.

• Four Seasons Hotel The Ritz Lisbon (Lisbon): Built in the 1950s and host to a roster that reads like a who’s who of international glamour, the Ritz is one of Portugal’s legendary hotels. Everywhere in the hotel, you’ll get the impression that a swanky reception is about to begin.

• Costa do Sol: Sometimes called the Estoril Coast, this stretch of seafront extends 32km (20 miles) west of Lisbon. Its two major resorts are Estoril and Cascais. Once the playground of the win- tering wealthy, the area now attracts throngs of tourists, mainly from northern Europe.

• Hiking in the Algarve: Portugal’s incredible physical beauty makes it a spectacular place for outdoor activities. In the southern Algarve region’s low-lying lagoons and rocky highlands, the panoramas extend for miles over the nearby ocean. Especially rewarding is trekking through the territory near Sagres, which has retained its mystical hold on journeyers since it was known as the end of the world. Other worthwhile hikes include the footpaths around the villages of Silves and Monchique, where eroded river valleys have changed little since the Moorish occupation.

Centuries ago, Portugal was a pioneer of worldwide exploration. Until recently, however, it was never as successful in attracting visitors to its own shores. Outside of greater Lisbon, the Algarve, and the island of Madeira, Portugal remained unknown and undiscovered by the mainstream visitor for many decades.