Punakha, the old capital of Bhutan, has gained a hotel with serious pedigree: Pemako Punakha, a riverside retreat conceptually designed by Bill Bensley, the architect behind Shinta Mani Mustang in Nepal, which Robb Report recently ranked the number one luxury hotel on Earth for 2026.
The new property matters for more than its designer's name. It's the flagship of Pemako, the first Bhutanese-owned and managed luxury hotel group, and it houses Bhutan's first luxury tented villas — 21 of them, spread across 60 acres of forest on the banks of the Mo Chhu River. Bensley has framed the whole design around the Himalayan idea of beyul: mystical hidden valleys believed to offer spiritual refuge. Guests arrive by crossing a bridge hung with prayer flags and are welcomed with a blessing from the resident Buddhist monk.
Inside, the villas lean hard into Bhutanese identity. The palette pulls the yellow, white and orange of the national flag, with black accents echoing traditional highland tents and furniture referencing Dzong fortress-monastery architecture. Every villa comes with a private temperature-controlled pool — another first for the country — plus wide decking and river views, and a copy of The Bhutanese Guide to Heritage sits by each bed.
What you actually do here goes beyond lounging by the pool. The hotel arranges prayer-flag-hoisting ceremonies, meditation and evening prayers with its monk, folk music and sacred Cham dance performances. Guests can dress in the national Gho and Kira garments, or get coached in archery and khuru, the national sports, by a personal butler. It's a structured way in for travellers who want culture, not just scenery.
There's a local angle worth noting, too. Ninety-nine per cent of staff are Bhutanese, and the hotel sources produce from nearby farms and works with surrounding communities. For a country that limits tourism through its daily fee system, a home-grown luxury brand that keeps the money in-country is a meaningful shift from foreign-run openings.
Who's it for? Travellers already sold on Bhutan — or tempted by the region after hearing about Bensley's Nepal success — who want a high-design base with genuine cultural programming. Punakha sits lower and warmer than Thimphu, with the dramatic Punakha Dzong nearby, making it an easy few days on any Bhutan itinerary.