Gramado tends to be on the pricy side, especially during high season (summer and winter), although off-season, and during the week, you can find some good discounts. Prices below are for low- to mid-season.

Located in a leafy, upscale neighborhood only slightly removed the bustling center, Recanto da Lua (Rua Antônio Accorsi 322, Bavária, tel. 54/3286-2463, www.pousadarecantodalua.com.br, R$90–150 d) is a very good bargain. The rooms inside the large A-frame lodge are pleasant and cozy (standard rooms are in the attic with sloping ceilings) with lots of wood and farmhouse accents. Breakfasts are copious, and the living room has a roaring fireplace.

In the same neighborhood, Pousada Vovó Carolina (Av. das Hortências 677, Bavária, tel. 54/3286-2679, www.vovocarolina.com.br, R$165–216 d) is slightly more plush. Except for the master suites, the sedately decorated rooms are a bit small, but possess a nice retro flavor. The lounge has an enormous fireplace and there is also a thermally heated pool. The breakfasts are very copious with lots of home-baked goodies.

Perched graciously on the shore of Lago Negro, the
Estalagem St. Hubertus (Rua da Carrière 974, Planalto, tel. 54/3286-1273, www.sthubertus.com, R$230–405 d) is a stately white palace of a hotel surrounded by thick forest and splashes of hydrangeas. Old World elegance holds sway in the luxurious apartments featuring floral prints, fine linens, and refined accents. Although standard rooms are a bit cramped, you can definitely stretch your legs out in the fireplace lounge decorated with stuffed pheasants or the glassed-in salon overlooking the lake where afternoon tea is served. Extras range from a thermal pool to swan-shaped boats in which you can pedal around the lake.

Varanda das Bromélias (Rua Alarisch Schulz 158, Planalto, tel. 54/3286-6653, www.varandadasbromelias.com.br, R$440–710 d) boasts a privileged location amidst a private woodland on the town’s highest summit. Billing itself as the region’s first boutique hotel, it is a sophisticated departure from the faux Alpine chalets that are the norm. Clean lines, natural wood, lots of glass, contemporary art, and warm accents mingle, creating a unique and quite romantic atmosphere. Each of the exquisitely furnished apartments has its own fireplace and veranda. Aside from a glassed-in pool, there is a spa and fitness center. Service is extremely attentive.