This remarkable hotel is in an area on the caldera of Santorini where a few hundred years back poor farmers and fishermen lived in troglodyte houses carved into the cliff-side. Owner Costis Psychas (and his father before him) spent several decades restoring ruined caves, creating breathtaking complex of whitewashed houses that blend in perfectly with the shapes and volcanic grey shades of the cliff. A spectacular swimming pool gently follows the shape of the cliff-edge, its blue colour merging with that of the sky and the sea. Interiors are done in a striking ‘Cycladic Zen’ style, white and bright, while hand woven fabrics add touches of blue, lavender and pink. In some houses a shaft of sunshine pours in from a skylight. Everything (stone-built benches, walls, ceilings) is smoothly curved. Even the built-in beds are tucked away in round niches. It creates a calm and peaceful feeling, which matches the overall atmosphere at Perivolas. Don’t book here expecting to find glitz and glam this is a place where you can relax and spend days just taking in its unmatched beauty and magic.