Valletta used to be a tricky place to sleep. Malta's golden capital was full of historic houses but short on actual hotels. That has changed fast, and a new roundup from The Independent Travel ranks ten of the best places to stay in the walled city, which is compact enough that everything is on foot and buses from City Gate reach most of the island.

The standout names: the Phoenicia Malta takes the overall crown, a grand Art Deco hotel just outside the bastion walls where Princess Elizabeth once danced with Philip in the ballroom. It has indoor and outdoor pools, a spa, a long garden and famously loyal Maltese staff, though standard rooms run small for a five-star and prices match the reputation. Even if you don't stay, the reviewer suggests dropping in for a drink.

For atmosphere, it's hard to beat Casa Rocca Piccola, a 16th-century palazzo that is still lived in by the Marquis de Piro and doubles as a house museum and B&B. Rooms are suite-sized and decorated by his granddaughter, and the rare courtyard garden hides an underground WWII shelter and a resident parrot.

Food-led travellers get two strong options. Rosselli, a sleek boutique on Merchants Street, houses Under Grain, a Michelin-starred cellar restaurant, plus a casual sibling eatery. Its sister property AX The Saint John sits 50 metres away, shares the same desk and Michelin-overseen breakfast, and costs less. At the luxury end, Iniala perches on St Barbara Bastion with sweeping Grand Harbour views towards Fort St Angelo and a rooftop restaurant; book ION by Simon Rogan, Malta's only two-Michelin-starred restaurant, while you're there.

The middle of the list suits smaller budgets and quirkier tastes. Palazzo Consiglia squeezes a spa (in an old cistern), plunge pool and 24-hour bar into 13 rooms. SU29 has eight wildly different rooms, from a classic with a traditional gallarija balcony to a fitness suite with a punching bag, and sits near the Upper Barrakka Gardens. Domus Zamittello, a 17th-century palazzo still owned by the family granted it in 1805, has a roof terrace facing the open-air theatre carved into the old opera house ruins. 66 Saint Paul offers 18 rooms around a covered courtyard with harbour views, and the six-room Coleridge feels more like staying in a friend's townhouse, all limestone, murals and antiques.

Worth knowing: Valletta has been properly discovered, so prices have climbed with its popularity. Winter stays are noticeably cheaper, and the shoulder seasons still give you warm weather and walkable streets. If you can't stretch to the top-end picks, the boutique and B&B options deliver plenty of character without five-star pricing.