If you splurge on one hotel in Timor-Leste, make it this one. Eight spacious, modern rooms are set alongside the path to its restored 18th-century pousada. Weekends see expats enjoying pizza (US$10-15) by a blazing fire on the terrace. At the very least, stop by for a drink to enjoy the exquisite ocean views. It's opposite Balibo Flag House.
Supported by the Australian-based Balibó Trust, the hotel trains and mentors local community members in the skills needed to transition the project to long-term local ownership. Mountain bikes can be rented.