A Mediterranean country manor, the Pillars is located a few minutes from the Lake Taupo township and has four luxurious guest rooms and three acres of formal gardens.
Reviewers on TripAdvisor called The Pillars a "piece of paradise" offering a "beautiful, serene and relaxing stay" in "a gorgeous guesthouse with beautiful gardens".
The Pillars is also committed to eco-friendly practises and serves delicious organic breakfasts.
Queenstown's The Dairy is a boutique hotel with a difference - every morning cooked breakfasts are served in what was once a general store, which dates back to the 1920s.
One guest at The Dairy encouraged visitors to "do afternoon tea around the beautiful log fire - it's lovely".
An outdoor hot tub and fireplace offer a warm way to enjoy the cool mountain air and stunning scenery.
The top 10 list of top-rated small hotels
1. Edgar House, Chester, UK 2. The Pillars Retreat, Taupo, New Zealand 3. Saffire Freycinet, Coles Bay, Australia 4. Nayara Springs, La Fortuna de San Carlos, Costa Rica 5. The Place Luxury Boutique Villas, Ko Tao, Thailand 6. La Minerva, Capri, Italy 7. The Old Rectory Hotel, Martinhoe, UK 8. Riad Kheirredine, Marrakech, Morocco 9. Spirit of the Knights Boutique Hotel, Rhodes Town, Greece 10. The Dairy Private Hotel, Queenstown, New Zealand