Many hotels offer discounts outside the peak summer and winter months, especially during the week, though accommodation is hard to find during the second and third weeks of August, when Gramado hosts the Festival de Cinema , the most important event of its kind in Brazil and one of Latin America's foremost film festivals. The lowest-priced hotels are the Planalto across from the RodoviA?ria, at Av. Borges de Medeiros 554 (tel 054/286-1210; $10-20), and, also in the centre, the Dinda, Rua Augusto Zatti 160 (tel 054/286-2810; $10-20). There's no lack of more expensive places to stay: worth considering is the small Hospedaria Andrade at Av. Borges de Medeiros 3585 (tel 054/286-3356; $20-35), or the Hotel Cavalo Branco (tel 054/286-1254; $35-50), the latter with a pool set in beautiful grounds. Overlooking the town centre in a private park is the Hotel Serrano (tel 054/286-1332; $90-125) at Av. das HortA?nsias 1160, a good choice if you're after luxury hotel facilities with rustic pretensions.

As far as restaurants are concerned, many claim to be "Swiss" or "Italian" and, in general, the Italian ones are cheaper while the Swiss tend to be better. One of the best in town is the Belle du Valais, Av. das HortA?nsias 1432. You'll get a superb cafA© colonial in Gramado featuring all the local goodies - try Tia Nilda, Av. das HortA?nsias 765 (closed Wed).