( Travel + Leisure ) -- Stockholm has a reputation for being one of Europe 's most expensive cities . T+L hits the streets of the fashionable capital and proves otherwise . Stockholm 's Strommen River . 9:00 a.m . I plot my day over a complimentary breakfast of homemade yogurt and knäckebröd ( crispy bread ) at Hotel Anno 1647 ( 3 Mariagränd ; 46-8/442-1680 ) , housed in a former tobacco and clothing factory in the hip island neighborhood of Södermalm . My room ( $ 170 ) , No . 21 , is small and peaceful , with rustic pine floors , an antique crystal chandelier , and , thankfully , blackout drapes -- essential in a city that gets 18 hours of sunlight a day in the summer . 10:00 a.m . The hotel is around the corner from Götgatan , one of Stockholm 's most seductive shopping strips . Though it feels a little early to start spending , I ca n't resist a jar of cloudberry honey ( $ 6 ) from Iris Hantverk ( 37 Götgatan ; 46-8/641-9190 ) , a store that specializes in handmade items by visually impaired artisans . I crave almost everything I see in DesignTorget ( 31 Götgatan , 46-8/462-3520 ) , which carries an eclectic range of accessories by Swedish designers , including hand-printed dish towels and colorful kids ' toys . But I force myself to move along . 12:00 p.m. For lunch , I circle back to busy Slussen square -- Stockholm 's answer to Grand Central . The main attraction here ( besides a major subway stop ) is the humble Nystekt Strömming ( fried herring ) wagon , encircled by picnic tables crowded with locals on their lunch breaks . I sidle up and order the signature dish ( $ 6.25 ) topped with a dollop of crème fraîche . From my bench , I can see the silhouette of Gamla Stan , the old section of the city just across the bridge . 1:00 p.m. Down along the harbor , a freckled blond girl at a candy cart snips off a sample of her salt licorice ( free ) , a delicious flavor called Häxvrål -- `` scream of the witch , '' she translates . After a short stroll past the steamboats and Baroque mansions of Östermalm , I arrive at the Vasamuseet ( 14 Galärvarvsvägen ; 46-8/5195-4800 ) , a maritime museum built around a meticulously reconstructed boat that was shipwrecked in the 17th century . I buy a ticket ( $ 15 ) and explore the gigantic ship , feeling a little like an extra on the set of `` Pirates of the Caribbean . '' 3:30 p.m. Risking museum burnout , I head to the galleries ( $ 12.50 admission ) of the Moderna Museet ( Skeppsholmen ; 46-8/5195-5200 ) , designed by the Spanish architect Rafael Moneo , to see its collection of 20th-century European and American art . Here , I discover the contemporary Swedish painter Karin Mamma Andersson , whose lush , layered paintings look like dreamscapes . I also find one of the city 's best photo ops -- the panoramic view of the port from the glass-walled museum café . 5:00 p.m . I forgo a pricey taxi ride across the city in favor of an infinitely more charming and scenic walk toward Gamla Stan , which is touristy but irresistible once I 'm weaving through a knot of cobblestoned streets and storybook 17th-century houses . My reward is a hot chocolate ( $ 4.70 ) at Kaffekoppen ( 18-20 Stortorget ; 46-8/203-170 ) , a candlelit cellar with tea-stained walls and low vaulted ceilings . 7:00 p.m . While wandering the alleys of Gamla Stan , I stumble upon what may be the city 's top bargain : a classical music concert ( $ 11 ) at Storkyrkan , Stockholm 's central cathedral ( 1 Trangsund , Gamla Stan ; 46-8/723-3016 ) . I take a seat in a wooden pew as a local pianist fills the space with the music of Chopin . Dusky evening light filters in through leaded glass windows and shimmers off the golden angels on the high brick ceiling . Divine . 9:30 p.m . The lingering sunlight has affected my eating schedule , but I 'm finally hungry again . On the patio of Babylon ( 4 Björns Trädgårdsgränd ; 46-8/640-8083 ) , surrounded by chattering clusters of young fashion plates and artist types , I wrap myself in one of the restaurant 's green fleece blankets and gobble down a late dinner of potatoes and röding ( $ 25.80 ) , a local fish . From my barstool , I watch skinny blond skateboarders dip and sail around a cement half-pipe in the adjacent park , and revel in a priceless travel high : the giddy feeling of having discovered the coolest place in town . TOTAL SPENT : . $ 251.25 E-mail to a friend . Planning a beach getaway ? Do n't miss Travel + Leisure 's guide to Affordable Beach Resorts . Copyright 2009 American Express Publishing Corporation . All rights reserved .
Hotel Anno is located in the hip ##pie neighborhood of Södermalm . Locals gather around the old station wagon in the square . Moderna Museet features a collection of 20th - century European and American art .