Tiny underrated European country is a hidden gem for Christmas market holidays

Luxembourg may be one of the smallest European countries, but its appeal as a winter holiday destination shouldn't be underestimated. With castles, fortresses and charming old towns, the nation offers a fascinating glimpse into its history, while vibrant cultural events and a trendy foodie scene keep things fresh. The chic juxtaposition of chocolate-box cottage charm and contemporary comfort proves that sometimes the best things really do come in small packages, as we found out...

Luxembourg at Christmas

We were lucky enough to visit Luxembourg at Christmas time, and what we encountered had all the markings of a festive film. As December arrives, the cobbled streets are awash with twinkling fairy lights, pretty wreaths and rows upon rows of elegantly decorated Christmas trees.

Fully cocooning ourselves in the festivities, we arrived in Luxembourg on St Nicholas Day. On 6 December, children throughout the country eagerly await the arrival of the 'Kleeschen' (St Nicholas) and the gifts he brings. Unlike Father Christmas, St Nicholas wears a red bishop's mitre and carries a crosier. Story has it that he is usually accompanied by the 'Houseker', his bogeyman-type companion, who gives twigs to children who have misbehaved. We must have been on the nice list, as awaiting us in our hotel room on arrival was a gorgeous assortment of sweet gingerbread and fruit.

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And even more tempting festive treats can be found over at the Christmas markets. With a melting pot of French, German and Belgian influences, the markets strike the perfect balance between cosmopolitan and quaint. And there are plenty to choose from – from the spectacular Grand Ducal Christmas Market in Luxembourg City to the lesser-known stalls in surrounding towns.

Where to stay in Luxembourg

Nestled in Kirchberg, a business district just 15 minutes by tram from the heart of Luxembourg City, Mama Shelter is a lively hotel known for its eclectic and creative flair.

The lobby entrance could easily be mistaken for a Santa's grotto at this time of year, with colourful twinkling lights and kitsch Christmas decorations taking centre stage. While little ones will love the Disney cartoons at breakfast and Space Jam masks in the bedrooms, for adults, the real treats are the super cosy king-size beds, catalogue of free movies and streaming hot showers (perfect for warming up after frosty winter strolls).

An artistic touch runs throughout the lobby, restaurant and bar, and is echoed in all 145 bedrooms with cool, graffiti-inspired monochrome carpets contrasted with soothing pastels and cosy furnishings.

It's not just style they've got right, there's plenty of substance here too. Toiletries are sustainable, with organic solid products developed in collaboration with French skincare brand Absolution.

And be sure to check out the hotel's very own bakery, where – as bakery manager Kévin Jeanson puts it – all products are made with “a lot of love and butter”.

Where to eat and drink in Luxembourg

Café-Restaurant Um Dierfgen is a favourite lunch spot among many and serves up traditional Luxembourgish dishes, such as the 'Judd mat Gaardebounen' – smoked pork collar and broad beans – and 'Kniddel', a type of dumpling often in a bacon and cream sauce.

Fancy something a little bit special? Head over to Public House in Ville-Haute. Sustainability and local produce are of top priority at this fine-dining restaurant, while expertly selected artisanal wines match the superb quality of each dish. Meat lovers would adore the tasting menu’s oxtail ravioli with ricotta and sage, but we couldn't get enough of the pine-flavoured 'spruce ice cream' with pecan nuts – an explosion of zesty flavour with a fun, festive feel. It's clear head chef Anne Knepper and her team are passionate about bringing their dishes to life and a dining experience here is really not to be missed.

The perfect comfort food, we indulged in a vegetarian 'tartiflette' – a rich and hearty dish typically made with potatoes, reblochon cheese, bacon lardons, onions and cream – at the Christmas markets. The recipe originated in France and sees ingredients layered in a baking dish and then baked until the cheese melts and the top becomes golden.

Over in Vianden, situated within a 200-year-old abandoned cinema, you’ll find Ancien Cinema. It’s a super unique lunch spot, with original cinema seats and antique spotlights accompanied by vintage chairs and dining tables from the 1960s. We enjoyed a hearty burger and fries – smothered in Luxembourg mustard, of course – while watching classic cartoons on the big screen.

What to see in Luxembourg

Grab the LuxembourgCard to really explore the country. You'll get free or discounted entrance into more than 80 top attractions, such as a tour of the Bock Casemates – a network of underground tunnels carved into the rock – and multiple museums and cultural experiences.

Located within a stone’s throw of each other on the 'Museumsmile', fans of fine, modern and contemporary art should check out Casino Luxembourg, Villa Vauban and the Mudam Museum of Modern Art.

You'll find Museumsmile on Luxembourg City's fish market. The 'Fëschmaart', formerly the intersection of two Roman roads, surprisingly, doesn't actually sell fish. Instead, the square provides a gathering space for locals and tourists to soak up the atmosphere of the city. Festivals and performances are often hosted nearby, so it's worth checking out what's on during your visit.

If you still have Christmas gifts to buy, you’re bound to find something incredibly impressive in one of Luxembourg City’s luxury boutiques. From Louis Vuitton and Cartier to independent craft and jewellery shops, there’s something for every taste – and budget.

But don't limit yourself to the city, be sure to take a trip north by train (public transport in Luxembourg is free). The town of Vianden is around an hour away and here you'll find a picturesque medieval castle, set against a forested backdrop. Situated next to the Our River, in Luxembourg’s Ardennes region, Vianden Castle remains one of the most beautiful feudal residences of the Roman and Gothic periods in Europe. History buffs will enjoy learning about the castle's fascinating past (free access with the LuxembourgCard), while those who make the most of Vianden's host of hiking trails will be rewarded by magnificent views.

How much does it cost to go to Luxembourg?

Return flights from Manchester to Luxembourg start from £107 per person, flying with LuxAir. Bed and breakfast for two at Mama Shelter starts at £105 per room, per night. For more information about Luxembourg and to plan your trip, see visitluxembourg.com .