The leading lady of northern Spain's Basque Country, Bilbao has over the past 20 years transformed herself from a dirty, industrial port to a thriving cultural city. Despite taking great strides towards modernity, spearheaded by Frank Gehry's spectacular Guggenheim Museum in the city's former shipyards, the Casco Viejo (Old Town) is still the most atmospheric place to stay. Amid the medieval streets, you'll find innovation too, particularly in the characterful pensións. One of the newest, Caravan Cinema, launched a little more than six months ago – not itself a cinema, but a film-themed guesthouse.
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