If you splurge on one hotel in Timor-Leste, make it this one. Eight spacious, stylish modern rooms with brushed concrete and little patios are set alongside the path to its restored 18th-century pousada. The restaurant serves pizza (US$15 to US$18) as well as some Southeast Asian dishes, or just stop by for a drink to enjoy the exquisite ocean views from the battlements.
Supported by the Australian-based Balibó Trust, the hotel trains and mentors local community members in the skills needed to transition the project to long-term local ownership. There's an on-site massage studio, and excellent walking tours and bike rental offered by Balibó Trails opposite.