While Chile’s exotic landscapes of Patagonia and the Atacama Desert tend to capture much of the world’s attention, the UNESCO World Heritage port city of Valparaiso is an under-the-radar gem. Situated on The Central coast just two hours west from the capital Santiago, the city’s poetically sloping streets of colourful, corrugated metal-sided houses are worth more than a quick detour. The town has seen the benefits of a $75 million urban redevelopment programme that culminated in 2012. Funky new boutique hotels, museums and restaurants are taking over swaths of some of the city’s 45 hilltops, or cerros, which are traversed via a network of more than a dozen funicular elevators, which date to the late 19th century.

On Cerro Alegre, developers spent $5 million to restore a national monument and turn it into the luxe 23-room Palacio Astoreca, now a Relais and Chateaux property with a chic spa and design-driven ethos. The hotel’s restaurant, Alegre is run by Chilean born chef Francisco Araya. It serves 12-course tasting menus that draw inspiration from Chilean, Spanish and Japanese cuisine. Just down the famed Paseo Yugoslavo, a cobblestone promenade with some of the finest views of the bay, is the Museo de Bellas Artes, a new art museum in the Palacio Baburizza, an art nouveau 1916 palace that underwent a 13-year renovation.

Other small hotels are taking advantage of Valparaiso’s views. Casa Higueras, a 20-room hotel set in a five-floor mansion, drapes the hillside with terraces and a garden level with an infinity pool that stares out over the bay. At the minimalist, nine-room Zerohotel, four terraces were installed amid the shape of almond trees to create ideal viewpoints for sunrise expressos or sunset pisco sours.

While you are in Valparaiso, consider a street art tour and take time to check out Cerro Concepcion, where dozens of local designers and artists have recently opened shops and galleries, including Bazar La Passion, with its well-curated selection of elegant women’s fashion. The city also makes a great home base for excursions to the neighbouring resort time of Viña del Mar, and it is within striking distance of Casablanca Valley wineries and Pablo Neruda’s house museum at Isla Negra.

If you enjoy street art, murals and flowers, you could easily spend your entire trip in Valparaíso just walking up and down the streets. There is usually one or more of each covering most of the open walls around the city.

How to get there?

From the bus terminal in Pajaritos in Santiago, take a bus to Valparaiso, such as the bright green Turbus. While there are many bus companies driving the route, the most famous companies are Turbus and Pullman. Buses for Valparaiso leave every 15 minutes from 6:00am to 10:30pm every day. Travel time takes about 1.5 to 2 hours depending on the traffic, but time flies during the journey as there are scenic vistas to admire.