SURFERS PARADISE is a resort in Australia - a gaudy sprawl of apartments, tacky souvenir shops, risqué nightclubs and fast-food restaurants.

Surfers' paradise in Britain can be found at Watergate Bay, on Cornwall's north coast. And it does things a little differently.

While nearby Newquay might be said to match much of what Australia offers, Watergate Bay is a whole world away with - and I wasn't sure this was possible - an almost sophisticated surf scene.

The hotel is bang in the centre of it all: a stylish retreat recently given an “urban chic” makeover with minimalist rooms with pastel-green wallpaper, mock French antiques, stand-alone baths, flat-screen TVs and a path down to a caramel-sand beach.

A late booking meant that I had one of the best and costliest rooms, £370 B&B with a sea view. It was all that was left (honest).

You could have had three nights in other parts of the hotel for the same amount. Feeling as if we had landed rather expensively on our feet (it was the “showcase” suite in the “sleep” section on the website), we went for a dip in the secluded pool on a quiet wooden terrace.

As we passed reception, a stocky man in a pink shirt was holding up a wad of £50 notes. He must have had at least £1,000. “Where can I put this; there's no safe in my room?” he asked loudly, waving the cash about as if he had just backed a 100-1 winner at the races and didn't particularly care who knew.

Sophisticated surfing, it was dawning on us, comes at a price.

After a swim and a dip in a hot-tub, we went to Fifteen Cornwall, the Jamie Oliver-inspired restaurant connected to the hotel that trains chefs from disadvantaged backgrounds.

Our balcony table overlooked games of Frisbee, bat-and-ball, and keep-it-up football. Children made dams and channels in a stream running to the sea. Dogs chased tennis balls. The sun shone brightly.

Both the staff and the food (apart from one drawback) were great. There were five Italian-influenced courses featuring local produce. My turbot, potato gnocchi, smoked trout and rocket salad was fresh and just what I wanted. But my vegetarian companion had a legitimate gripe.

For each course we were offered a “vegetarian option”. In fact, they were the only vegetarian dishes available. “Not good enough,” was the verdict. But the surroundings were fun, with a wacky pink and grey interior, and the service was spot-on. Then again, we thought, wouldn't you expect that at £70 a head?

We didn't go surfing. We just watched the surfers. From the terrace of Watergate Bay Hotel they seemed like very stylish surfers. Sophisticated, even. Maybe they had got the cheaper rooms... £370 for a suite, frankly, felt way too much.

Bottom line Mystery Guest paid £370 for a B&B suite; others from £95

Sampling the fare £140 for five courses with wine for two

Best thing The food

Worst thing The price

Need to know Watergate Bay Hotel (01637 860543, www.watergatebayhotel.co.uk), Cornwall TR8 4AA

Room 8 out of 10

Food 7.5 out of 10

Service 7 out of 10

Value 3 out of 10 for a suite, 8 out of 10 for a less expensive room

Score 8.1

PUT TO THE TEST: 20 Mystery Guest questions for... Watergate Bay Hotel, Cornwall

1. Do rooms have kettles/coffee makers? And is there fresh milk?

Yes, there are kettles, but only small milk cartons.

2. Is there a hairdryer, and is it fixed to a wall?

Hand-held hairdryers.

3. Are coathangers metal, wooden, removable?

Wooden, removeable.

4. Complimentary bottle of water?

Yes.

5. Sheets and blankets or duvets?

Duvets.

6. What about a 'pillow menu'?

Different pillows on request.

7. Is lighting good enough for reading?

Yes, bed-side lamps.

8. Is there a shaving/make up mirror? And is it well lit?

No magnified shaving or make-up mirrors.

9. What about the in-room entertainment system?

TV, DVD and iPod docking stations.

10. Is there a temperature control panel?

No.

11. Do the windows open?

Yes.

12. Is there good sound-proofing?

Yes in Mystery Guest's room.

13. Is there wi-fi internet access?

Only in the reception/bar. Broadband available in rooms. £7 for a day.

14. Is there a good place to go jogging nearby?

Yes, along the beach or along cliff-top paths.

15. What is the vegetarian food selection like?

Not so good in Fifteen Cornwall, but more options at The Brasserie.

16. Is there baby listening/babysitting? And are children welcome at adults’ evening meals?

Yes, baby-listening devices and babysitting service. Also, there's a complimentary supervision of children aged 3-7 each evening between 7.30pm-9.30pm.

17. Is there wheelchair access to all areas?

Yes.

18. Do you get a free paper in the morning?

No, but free papers by reception.

19. Is there a pub round the corner?

Yes.

20. Is there free car parking? And is it secure?

Yes and it is secure.

Times recommends

• New York's top 10 new hotels
• A Scottish monastery retreat
• Welcome back to Rwanda