Uruguay only has a half dozen world-class hotels, but the current success of boutique hotels Mantra and Hotel Art Las Cumbres will surely lead to more developments in the future.

In the meantime, many South American visitors rent a house for a week or a month in Punta del Este and the other beach areas. If you want to follow that route, you can rent your own place for $1,000 or $50,000, but even at the top end you'd better plan far ahead for January or February. Outside of the high season, rates and occupancy levels fall and it's possible to get a prime room at the last minute.

Service and cuisine both demonstrate a lot of European influence and the overall quality is high at the top Uruguay hotels featured here. As of now there are three main areas that receive the bulk of Uruguay's visitors. Colonia is a town of cobblestones and pretty historic buildings that is a short hop by boat from Buenos Aires. The capital Montevideo is the business center, which is unfortunately lacking in high-end lodging options. The Punta del Este beach resort area is Uruguay's main draw and where most of the country's upscale hotels are located.

Below are links to reviews of the best hotels in Uruguay.