The balconies at this mini 18-room hotel give a fascinating bird's-eye view on local life in narrow P Yen Thai, dotted with greengrocers, butchers and colourful flags. Nights are quiet, but if you're bothered by morning hubbub, opt for inner rooms. Witnessing Hanoi awaken from the rooftop terrace at breakfast is a huge reason to stay here, along with the small but very comfortable rooms.
There is an attached tour agency, and airport transfers can be arranged.