The new boutique five-star Mirador de Dalt Vila Hotel, inside the old walls, offers panoramic views of Ibiza’s historic port. Opened in July, it’s housed inside a century-old colonial building with dazzling views of the harbour. Each of the 13 rooms has an air of classic elegance with marble ensuite bathrooms (complete with Jacuzzi baths), flat TVs and WiFi connection. The pool, restaurant and bar are small but with Ibiza Town on your doorstep, who cares? Doubles cost from around £290 per room per night in high season. And, if money’s no object, go for the great suite at a mere £800 a night.

Alternative places in Dalt Vila include the romantic boutique La Torre del Canonigo, close to the historic cathedral. Recently renovated with chunky dark wood furniture, glazed terracotta tiled flooring and rich burnt orange and vivid mustard painted walls, these apartments offer incredible views of the harbour and cost from £155 per night in high season and some can accommodate more than two people.

But the big talk of town is the new gigantic five-star Sal Ibiza hotel complex being built in the Paseo Maritimo district of Ibiza Town. All 157 suites will have a loft like feel, plus views of the sea and old town. Guests will be able to fritter their money away in the huge casino, or relax in the spa, gym and restaurant. With Ibiza Town jammed full during peak months of July and August, such a dynamic hotel will be welcomed by many who quite simply want to be in the thick of it.

The hotel will also be within stumbling distance of the leading clubs Pacha and el Divino, while a slightly longer walk will bring you to the centre of town with its boutique shops and bustling bars. Here, the perennial favourites such as The Rock continue to remain popular for a pre-club drink.

Summer 2007: Ibiza

Is the sun setting on the island's party reputation? No - Sam Lewis checks out the new hotels and bars and Sam Lyster the club scene

Ibiza’s clubs reopen amid drugs crackdown

The island's permissive attitude ended when Madrid’s representative ordered the closure of Amnesia and two smaller clubs

However, as with every season, new bars come and go. Check out the new Match bar if you want to drink at one of the newest bars on the block. Or get hold of Ibiza Now magazine or Ibiza Sun newspaper when you’re in resort for the very latest on what’s hot and what’s not.

NEED TO KNOW

easyJet flies from Belfast, Bristol, Newcastle, East Midlands, Liverpool, Glasgow, London Gatwick, London Stansted and London Luton to Ibiza. Inclusive fares start at £31.99 one way (£53.98 return).

Hire a car from www.holidayautos.co.uk. One week’s fully car hire in Ibiza starts from £18.00 per day.

Where to Stay: Santa Eulalia

The new hotel in town is the five-star Insotel Fenicia Prestige Thalasso Spa. The 176 contemporary suites have air conditioning, satellite flat TV, minibar, internet, deluxe bathrooms and balcony. Facilities include several pools, a 1200 sq metre thalasso spa, a pool bar, piano bar and four restaurants. Rooms from £137pp in high season, including breakfast.

Les Terraces, a cool converted finca with 10 rooms, two small pools and a tennis court, is the perfect place if you’re looking for somewhere to unwind away from the raucous revellers. Prices from £120 (subs trying to check) per room high season.

Villa Finca Grande is perched high on the hillside overlooking Santa Eulalia with the beach just 2km away. With impressive views, a large pool, landscaped gardens and BBQ area, you’ll feel like a pop star. Don’t just dream - get friends to fill the other three rooms and it could actually be affordable. Bookable through Meon Villas from £2,399 a week.