Graham's Place Hotel

Set on its own seven-acre cay a mile and a half off Guanaja, Graham's Place looks out over clear water and a wide stretch of white sand. The island is one of Honduras's Bay Islands, alongside Roatan and Utila, and the coast here is fringed with reef that draws divers and anglers from beyond the shoreline. Owned and run by Graham Thompson, the property keeps things small: a hotel building, a scatter of bungalows, and the Pink House, a one-bedroom cottage for two. Bungalows sleep up to six across three doubles, useful for a family or a group sharing a boat trip out to the reef. Rooms come with air conditioning or a ceiling fan, a kitchenette, and a full bathroom. Meals are taken at Fish Tales Bar and Grill, an open-air spot on the beach serving seafood and island dishes made with produce from local farmers, fishermen and the property's own garden. Coconut onion rings and jerk chicken pasta are regulars on the menu. A continental breakfast is included for guests staying on the cay. Beyond the beach and the pool, there is scope for hiking and waterfall trips on the mainland nearby. The water off the cay stays calm most days, and the beach itself runs shallow at the shoreline before dropping to the reef.