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London hotels are generally divided into two camps: The expensive (Claridges, The Ritz, The Dorchester, I could go on); and the dire (these are less costly, but smell of fried eggs and bacon and have questionable plumbing). Then there's Montagu Place, a month-old hotel that has replaced the boring "double," "superior double," and "super-duper double" categories with "Comfy," "Fancy" and "Swanky" rooms starting at a relatively modest $200 a night.

Location

Montagu Place occupies two Georgian townhouses in the Marylebone district, right in the centre of town. Grand, leafy Montagu Square, across the street, is among the few purely residential squares left in London, and the area is home to various embassies and consulates.

Ambience

There is a sense of down-to-earth stylishness about Montagu Place, and with only 16 rooms there's an intimacy you can't find in the area's mostly chain-run alternatives. The reception-cum-bar is a nice touch, and the lobby actually looks like anyone's dream living room. Design

Simple and chic, the brown and white colour scheme is elegant and fresh. The interior was completely gutted and refurbished and, despite having a modern look, it remains sympathetic to the Georgian roots of the building. Some rooms even have painstakingly restored original fireplaces. With comfy sofas, gorgeous lighting and lush textiles, the hotel is very much designed like a home, so there is no generic hotel feel about the place. Also, the bathrooms in all the rooms are up-to-date and surprisingly large.

Clientele

The hotel is so new it's hard to tell who the regulars will be. Thus far, visitors have included people in London for business, travellers visiting family in town and tourists who want to take advantage of the hotel's excellent location for sightseeing. In short, anyone who wants to stay in the heart of London but dislikes huge hotels.

Rooms

Choose from 16 rooms, either with double or twin beds, and with bath or shower (the Molton Brown toiletries are a nice touch). Unlike a lot of small hotels in London, Montagu Place has air conditioning, which is quite necessary during this very hot summer. All rooms sport flat-screen televisions, and guests can borrow DVD players, as well as a choice of movies, from the front desk. Rooms also feature free high-speed Internet access and voice-mail, and round-the-clock laundry services are available.

Food and drink

While the hotel is too small to have an extensive restaurant, guests can take breakfast in the dining room. The Continental buffet, with many organic items, is a good way to fuel up for a hard day's walking around London.

For guests who get the munchies in the middle of the night, the bar is open 24 hours a day, and the staff can rustle up an assortment of snacks and cocktails.

Service

With a hotel this small, there is only room for good service, and the hotel delivers. When we asked for a specific room on the first floor, it was made possible without any humming or hawing (unusual for London).

And with so few names to remember, the staff endeavour to make guests feel as though they are staying at a friend's house without ever losing the professional touch.

Bottom line

Montagu Place has struck the right chord in London's hotel landscape: It is a small establishment that is beautiful, well-located, intimate and reasonably priced. We can only hope to see similar properties appear across the city.

Hotel vitals

MONTAGU PLACE

Essentials: 2 Montagu Place, London; 44 (20) 7467 2777; http://www.montagu-place.co.uk.

Rates and rooms: Comfy rooms start at around $200; Fancy rooms start at $265; Swanky rooms start at $300.

Top draws: The gorgeous interior and home-like feel is a welcome break from generic, impersonal hotels. The central location on a quiet street is also a plus.

Needs work: The $200 price only lasts until the end of August, when comfy room prices rise to $265 a night.