Nestled between the road and the lake, with wonderful vistas of the distant mountains, this restored villa is a small select establishment, an expensive refuge for gourmands and privacy seekers. It would be perfect but for the din of traffic seeping into the compound from the abutting road. This property was once the home of Il Duce's mistress, Claretta Petacci, when he stayed over at Villa Fetrinelli. More posh pensione than hotel, this operation is run by the Tosetti family in a friendly, casual way.

This dreamy rose-colored neoclassical villa has more than a little Moorish styling to add an exotic touch to an overnight stay. Sometimes gracious, sometimes overgrown, the hotel's modest gardens make for a very private lakeside setting where palm, cypress, olive and pine trees mingle with amethyst hydrangeas. Proceed with caution when entering Villa Fiordaliso; high-speed traffic, a narrow gate, and a lake just a few meters away are a recipe for disaster.

There is no lobby here, so guests check in at a small desk in the foyer. Beyond, a gracious salon hosts tea. The limited common space features prim traditional appointments, French and Italian antiques, and Oriental rugs. The grand architecture shows through.

This is one of Relais & Chateaux's offerings, and in keeping with this select chain's culinary traditions, the restaurant here is one of the best on the lake, filling the parking lot nightly. Lombardian dishes are the specialty, as well as fresh lake fish. In summer, dining on the umbrella-clad terrace facing the lake is unbeatable.

The individually decorated guest rooms vary from small to just moderately cramped. Only two have terraces. Minibar and modern baths with hair dryers are provided, but TVs are not. Located on the top floor, Iris is a small but sweet pick, with a great view of the lake. Two large studios (referred to as suites here) are graciously furnished and filled with both history and ghosts. The larger Claretta Suite features a high coffered ceiling, king bed, lavish marble bath and lake-view terrace.

When eyeing the extravagant rates here, keep in mind that they include the privileged location beside the lake and restaurant. Calm and quiet off-season, this place proves less appealing in July and August, when noisy party-oriented Italians crowd Garda's shores.