Uruguay is one of the smallest and most developed nations in South America. It also has the highest level of human development and quality of life in Latin America, with an economy that is mostly based on agriculture. Its capital, Montevideo, is the centre of education and commerce, and boasts first class international hotels. Uruguay receives a great deal of tourists, mostly along its coastal towns, but many of the best hotels in Uruguay can be found in Montevideo. Tourists flock to quaint and picturesque towns like Colonia del Sacramento or the vibrant beach town of Punta del Este.

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Montevideo is the centre of commercial activity in Uruguay. Hotels are mainly located in the downtown area, but also the area known as the Rambla, a coastal avenue. The best hotels in Uruguay are found in Montevideo, with big names in hotel chains like the Radisson Montevideo and the Sheraton Montevideo. But there is also a great variety of boutique hotels, some in buildings that date back to the colonial period and retain their quaint, antique feel. However, Colonia del Sacramento, the oldest town in the country, is better know for its small, family-owned hotels and hostels.