Freddie Mercury lived there while looking for a home in Switzer-land, Vladimir Nabokov used the proceeds of Lolita to fund a suite there for the rest of his life and Deep Purple recorded Smoke on the Water in its lake-side pavilion.

There may not be a more celebrity-studded hotel in Switzerland than the Montreux Palace, arguably the country's most glamorous hostelry.

Thanks to investment by Fairmont, this multiple award-winning five-star gleams as brightly today as when it was built in 1906. The yellow awnings and art nouveau signage are as much a city landmark as the station, a five-minute stroll away, where Hemingway set one of his stories. But the hotel's great glory is its proximity to Lake Geneva - step outside and you're on the shore within 30 seconds.

While all the rooms are gorgeously done out in soothing pastels, insist on a lake view or postpone until you can get one; the whole point of this hotel is to sit on your balcony and commune with the glorious body of water and snow-capped mountains beyond.

Dining options include an elegant bar and grill overlooking the water and Funky Claude's, named for the founder of the Montreux Jazz Festival, where casual fare can be enjoyed with live music and beaucoup de buzz. The breakfast room, with its own lake-view terrace, is one of Europe's grandest, offering a spectacular spread.

Rates: Rooms from £204 www.fairmont.com

Indoor and outdoor pools and an Oriental-themed spa provide day-time diversion, while strolls beside the lake admiring the swans, flower displays and shoreside sculptures are a daily treat not to be missed (look out for the statue of Freddie Mercury).

Down the road is a great castle to visit - the magnificently preserved Chateau de Chillon which inspired Byron - and a panoramic train offers a thrilling ride into the mountains to nearby Gruyere, with its fondue cafes and cow bells.

However, the hard part is tearing yourself away from your balcony -a tough chore for those who have bagsed perhaps the world's finest hotel room view.