3 Best Hotels in Otavalo, The Northern Highlands

French and Spanish antiques fill this colonial ranch house, built in 1790, surrounded by palm trees. The huge light-filled suites, which can accommodate up to five people, have canopy beds, fireplaces, and spacious sitting areas. Some rooms have views of Imbabura Volcano. Horseback-riding trips are the hacienda's specialty.

The Quichua name of this colorful hotel means "good heart," and indeed the American owners go out of their way to make you feel at home. The spacious bedrooms with terra-cotta floors and local weavings surround a flower-filled courtyard, beyond which is Volcán Imbabura in the distance. Two expansive suites are ideal for families. The bright restaurant has wholesome dishes, including vegetarian lasagna and deep-dish chicken pie served with organically grown vegetables. There's live folk music on Friday night. For a real get-away-from-it-all alternative, these folks operate a lodge 5 km (3 mi) southwest of town. Four sparkling, fully equipped houses ($$$) have terra-cotta floors, cactus-braid rugs and wood-burning stoves to ward off the night chill. (There's even Wi-Fi access, but come on: leave the laptop at home and enjoy the surroundings.) Both properties are entirely no-smoking.

Two hours out of Quito puts you smack-dab up in the heights of Ecuador's best-known cloud forest, replete with trails, waterfalls, orchids, and an amazing 275 bird species to add to your life list. You can do the place as a day trip—a long day trip from the capital—but staying here at the reserve's rustic but comfy dome-shape hotel makes a much more relaxing alternative. Rooms, one of which is wheelchair-accessible, have wood floors, basic furnishings and private balconies. (The birds will be your morning alarm clock.) A couple of other small cottages on site offer more seclusion, but all offer you access to surprisingly yummy food considering the isolated location. Various mix-and-match packages let you include tours and transportation.