It may lack the grandeur of the Carlton Pestana, but this recently rebuilt 18th-century palace the Hotel Real Palacio offers grand surroundings in a central Lisbon location. Portuguese interior designer Graça Viterbo, also responsible for the Lisboa Plaza, has tastefully emulated a subtle regal design using his trademark pastel colour scheme. \r\n \r\nThere are 147 rooms in total, 12 of which are housed within the former palace walls. These overlook an interior courtyard, where musical events occasionally take place. The standard rooms are both light and airy, and a third of them have balconies. You can take dinner on an outdoor terrace, which provides a pleasant mixture of vibrant colour and satisfying angles. \r\n \r\nA small but newly refurbished health club is an equally welcome addition. More up-market than its sister hotel, Real Park, the Palácio is a refreshing alternative to the grotesquely ornate and outmoded establishments which seem to dominate the city centre.