A favorite with the king of Spain, the timeless red-stone Hotel Tirol is set in 20 hectares of humid forest and makes for a great day trip from Encarnación. Over 300 species of bird have been observed here and four inviting swimming pools (nonguests 10,000G) are a great way to cool off after walking the senderos (trails).
You'll need to book ahead in the high season (October to December), though it's often empty at other times of year. To get here take local bus 1y2 (marked Capitán Miranda) from along Av Artigas in Encarnación, which terminates at the entrance to the hotel. Any bus headed for Trinidad or Ciudad del Este also passes in front.