This is a classic destination, with not only a fabulous location opposite the palace, but also a glamorous bar, some of the best dining in the city, and a glittering guest list dating back to when it opened in 1874 (oh, and there's also a wonderfully revitalizing Nordic spa). Famously, this is where the Nobel Prize winners stay when they come to town. Locals love the Veranda restaurant for the traditional summer smorgasbord and the midwinter julbord. The hotel has also done an excellent job of refurbishing and renovating, airing out any lingering stuffiness. Be sure to get a room with a water view.