The secret hotels of sunny Crete

A style revolution is hitting the Greek island of Crete. Once it offered a simple choice between white concrete apartments, purpose-built villas and one or two pricy resort hotels.

All that has now changed. A new generation of architects, many of them local, are busy renovating old Turkish or Venetian buildings in the northern cities of Chania and Rethimnon. It's a bit like the Riad revolution which has transformed Marrakech. Holidaymakers in the know are eschewing hillside villas for town houses. Here are the best.

A 17th century Venetian mansion, just yards from the photogenic north coast harbour of Chania, Casa Delfino Suites (00 30 8210 87400; www.casadelfino.com) is tucked away in an alley for peace and privacy. There's a cobbled courtyard hung with greenery, perfect for alfresco breakfasts. Vaulted ceilings and winding staircases lend the Delfino a homely air; polished wood and marble floors give it a modern touch. With private whirlpools, satellite television, fax dataports and modem hook-ups, this is Crete's first truly 21st-century hotel. Doubles from £110 B&B.

A former monastery in Rethimnon, 50 miles east of Chania along the coast, the Veneto Hotel (00 30 8310 56634; www.veneto.gr) is a warren of wine cellars with a shady courtyard and an excellent restaurant. The décor is Cretan traditional, but the facilities are state-of-the-art. Smack in the middle of town, this is a great place to experience the old quarter. Doubles from £55 room only.

Another restoration in Rethimnon by a local architect, Palazzo Rimondi (00 30 8310 51289) is a complex of 15th century buildings. The apartments are light and airy, with separate sitting and dining areas. Gaze out from your balcony over the old town, or hang out by the pool, which has a dedicated area for kids. Two-person studios from £70 B&B; family apartments (sleeping up to six) from £94 B&B. Loutro is the kind of Greek fishing village everyone dreams of finding, with access only by boat from further along the south-west coast. The Hotel Porto Loutro (00 30 8250 91444) is right on the beach, with 18 rooms furnished in simple island style: white walls, wooden furniture, with views to die for over the bay. A wonderful place for older kids. Doubles from £25 B&B.

A hair-raising descent down mountain roads at the eastern tip of Crete leads to the tiny village of Kato Zacros, with its ruined Minoan palace. Up a wooded valley, George's Retreat (00 30 8430 26890) comprises a dozen bungalows set in landscaped gardens. Shady sitting areas are cleverly tucked in among the trees; the view down the wide valley to the sea is spectacular. At breakfast on the terrace you'll hear only birdsong and the wind through the olive groves. Doubles from £20 B&B.

If the best are full...

On the opposite side of the harbour to the Casa Delfino in Chania Pandora Suites (00 30 8210 43589) was once the British consulate, and has been restored in period style, with high wooden ceilings, iron bedsteads and blue wooden shutters. Most suites have basic self-catering facilities and it's more competitively priced than its rival across the bay. Doubles from £54 B&B.

An Art Deco-style curiosity, Neapolis Hotel (00 30 8410 33967) is set in the hills high above the Brit-friendly resort of Agios Nikolaos. There are just 12 rooms, with stripped pine furniture and lemon-coloured walls. Neapolis is an untouristic mountain town, and this welcoming hotel is its social centre. Doubles from £18 B&B.