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In a place where palm trees outnumber people 1000 to 1 and the day's favored pursuit is making your way to the laid back beach bar to sip a rum drink from a carved out coconut shell, the Peninsula House answers the question of where to go in Las Terrenas when total luxury is desired of a hotel. The only catch: the Peninsula House doesn't consider itself a hotel, but an exclusive guesthouse. “We only have six suites, there is no feeling whatsoever here of a hotel,” says Cary Guy, Peninsula House contributor and consultant. “What our guests feel immediately when they arrive is that they are at home.”

The once-sleepy fishing town of Las Terrenas on the Dominican Republic's Samana Peninsula is the base for the Peninsula House, which has been named one of the top places to stay in the entire world. The property has garnered high esteem for a hotel that opened its doors less than two years ago, a fact which you'd never guess by the supreme Victorian-era exterior. Its owner, South African Thomas Stamm, worked with renowned French architect Serge Robin to design the property in the style of an 18th century Caribbean plantation home. The 18,000-square-foot estate sits on a 15-acre bluff side lot and enjoys sweeping views of the Caribbean Sea and the 12-mile-long Coson Beach below. (Las Terrenas isn't new to appearing on “best of” lists; the town is home to some of the top ranked beaches in the world, Coson being one of them.)

Designed to give guests the feeling of staying in an opulent, classically styled Caribbean residence (complete with parlor, library and billiard room), the Peninsula House is appointed with luxurious yet comfortable antique furnishings, Turkish carpets, 21 antique crystal chandeliers and museum-quality art on the walls. Stamm's mother, French-born Marie-Claude Thiebault, acquired many of these pieces during her travels from galleries and flea markets around the world. Beyond the rich interiors, French doors open onto wrap-around verandas, bringing in the fresh Caribbean breezes. Outside, the infinity pool takes full advantage of the sea views and offers a quiet place to relax or swim a few laps. Small children aren't allowed at the Peninsula House, nor is the hotel open to the public, so that quiet you hear will remain throughout your stay.

Exclusivity and privacy are at a premium with only six junior suites available—each room is unique and opens onto verandas with sweeping views of the Caribbean Sea or the lushly manicured grounds. The lavish suites feature four-poster king-size beds, hardwood floors, high ceilings, settee areas, and rainforest showers and mahogany soaking tubs in the bathroom. Like the rest of the Peninsula House, the suites are furnished with unique, hand-selected antique items that give the feeling of being in not just a luxe resort, but a friend's private Caribbean home. And while the furnishings take you back in time, modern-era wi-fi, Bose stereos, TVs and DVD players can be found in each suite.

For those who want to stray from the guest house, the bussling village of Las Terrenas offers beachy bars, eclectic dining and activities ranging from whale watching to horseback-led waterfall treks. Something is happening in Las Terrenas that rarely happens in other Caribbean outposts—the town is becoming more cosmopolitan while still retaining its Caribbean-the-way-it-used-to-be charm. French, Spanish and seafood restaurants as well as luxury accommodations—from private homes to offerings such as the Peninsula House—abound.

Those content to stay put in the lush surroundings of the Peninsula House can do just that; starting the day enjoying fresh-baked croissants and juices made with fruit harvested from the onsite organic gardens while watching the sun rise over the ocean. Breakfast and dinner are served in the house, with dinner taken on the patio or privately on a veranda. The exquisite place settings, comprising 19th century silver, crystal decanters and a blend of antique and modern china, change nightly. “If you stay with us five nights, you will never see the same place setting twice,” Guy says. “Just another way we make it feel more like a home here than a hotel.”

Ten minutes down the road is the Peninsula House's beach club where lunch is served in the Beach Restaurant—guests enjoy complimentary transport to this lunch spot located on a lovely strip of Coson Beach. The Beach Restaurant is open to the public, giving guests a chance to mingle with tourists and locals, but their tables are always reserved. A beach house version of the Peninsula House in décor, the Beach Restaurant serves up fresh seafood dishes and delectable deserts. After mealtime guests can relax by the ocean in comfy chaise lounges and order up that ubiquitous rum drink, sans coconut shell.

Something is brewing in Las Terrenas, drawing French, Dutch, Italian and the stray America visitor to this town's slow accent as a world-class vacation home spot as well. At the Peninsula house you can view it all through exceptional accommodations that will pamper you with luxury, soft Caribbean breezes and lush surroundings. The Peninsula House and this little Caribbean town are somehow lost in time but no stranger to every conceivable Caribbean treat.