Bruges also known as 'Venice of the North'

"Tourists land in here, take one look at the surroundings and know right away there's been some mistake," says Johan Creytens, owner of the Heritage Hotel in Bruges, Belgium, the city of canals that bills itself as "The Venice of the North."

It's an easy mistake to make. The Heritage, a four-star establishment, is located at Niklaas Desparsstraat 11. Right next door, at Niklaas Desparsstraat 9, is the Hotel Nicolas, with a two-star rating. It isn't uncommon, according to Creytens, for a travel-weary tourist stumbling out of a taxi late at night to wander into the wrong lodgings.

"We don't consider ourselves competitors," says Creytens. "They serve a particular clientele and so do we. If somebody chooses the wrong place - and it happens occasionally - we cheerfully send the guest next door, and they do likewise."

The Heritage provides all the amenities its four-star designation promises, from a sumptuous breakfast buffet in a beautiful salon setting to rooms you're thrilled to get back to after a long day of playing Jo(e) Tourist. A standard room currently goes for 140 euros single and 152 euros double. Breakfast is an extra 15 euros per person.

The Nicolas, on the other hand, rates two stars, so what you get is fairly basic. The breakfast is hearty but fairly unimaginative and the rooms, while clean and comfortable, aren't anything to write home about. This hotel's standard room is a wallet-pleasing 50 euros single and 60 euros double.

I recently stayed at the Hotel Heritage as their guest and they put me up in their showcase Belfry Suite on the top floor where skylights on each section of the sloped ceiling offered a breathtaking view of a different church spire.

This top-of-the-line suite came with a cosy sitting room, linen sheets on one of the most comfortable beds I've ever slept in, and a brightly lit and richly tiled bathroom featuring a double sink, Jacuzzi bath and separate shower cabinet. The normal tariff for this suite is 404 euros single and 416 euros double.

Johan and his wife Isabelle purchased their historic building in 1992. It had been a bank for about 70 years and had had a varied existence before that, dating back more than 500 years. Extensive renovations turned the edifice into a luxurious inn and spa - and a residence for the Creytens, who live in a suite on-site so they can keep close tabs on its day-to-day operations.

I also made a point of going next door to visit the Hotel Nicolas and can honestly say I would stay there without hesitation. I have paid a lot more for a lot less.

The Nicolas is also family operated. Yiling and Thomas Timmerman also take pride in what they have to offer. "We're not in the same league as the Heritage," says Yiling. "But we offer clean, comfortable accommodation for travelers keeping a fairly close eye on their budget."

One attractive feature of these hotels is that they are just a short walk from the Market Square, where boutiques and shops offer a cornucopia of Belgian specialties, including chocolate, lace and myriad souvenirs.