At the edge of Hamilton Harbour, this former private home -- now the most famous inn on Bermuda -- is a Relais & Châteaux property. Terraced gardens, which descend to the water, are often the setting for waterside buffets. Guests dine by candlelight on the harbor-front terrace or in the elegantly appointed, English-style dining room, where a fire roars in the fireplace on nippy evenings.

Some reports suggest that the food has declined in quality, but that's not what we found on recent visits. A discriminating reader from Virginia agreed, saying she found the food "absolutely fantastic -- though somewhat expensive." Portions at lunch were so large that she skipped dinner. Waterloo has a dramatic and elegant setting, although the French and Italian food at Monte Carlo is more cutting edge.

You might begin with seared foie gras or lobster and crab crepe. The best main dishes are grilled filet beef teriyaki, crayfish on a skewer, or house-blackened red snapper.