Suddenly it seems as though every permanent structure in Portugal has been converted into a luxury boutique hotel of one description or another. Even in an increasingly crowded field, though, the Verride Palácio Santa Catarina stands out. This splendid old palace in the blossoming Chiado district dates back to the year 1750, and it’s full of lovingly preserved original architectural detail. But it’s not strictly a by-the-book restoration — architect Teresa Nunes da Ponte has introduced a contrasting line of modern design that harmonizes beautifully with the opulence of the old palace. It’s not just boutique-style; at 18 rooms, it’s a small hotel, which means individualized service and the kind of attention to detail that’s difficult to maintain at a large scale. While the rooms and suites vary in the precise balance between old and new — some are quite contemporary indeed — they’re all elegant and more than a little bit luxurious. And thanks to the house’s history as a palace, it’s also full of fine public and semi-public spaces, including a fine-dining restaurant called SUBA Gastro Bar, a more casual rooftop bar with a 360-degree view, and a winter garden (where breakfast is served) that opens onto the most unexpected space of them all: a delightful little rooftop swimming pool.