2. Hotel Canal and Walter £339
An alternative name might be Canal and Water, given its position on the Grand Canal in Santa Croce. A little way from the centre of the action and close to the railway station (15 minutes to the Rialto Bridge), this restored 32-room palazzo is designed in traditional 18th century Venetian style. Family-run, it has a garden of climbing roses, wisteria and a central well, good for breakfast and evening drinks in the summer. Rooms are baroque in style, some with canal views, some with garden.
3. Sovereign
(08705 768373; www.sovereign.com).