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On the Baltic Beaches; For half a century they were obscured by the Iron Curtain. Now they're Europe's latest getaway.

Newsweek International

| August 21, 2006 | Theil, Stefan | COPYRIGHT 2006 Newsweek, Inc. All rights reserved. Any reuse, distribution or alteration without express written permission of Newsweek is prohibited. For permission: www.newsweek.com. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: Stefan Theil

Ludorf Manor, in the former East Germany, was a wreck when Manfred Achtenhagen bought it in 1998. Built in 1698 by Baron von Knuth, it had been plundered and expropriated as "class-enemy property" by the invading Soviet Army in 1945 and then neglected during half a century of communism. But two years and [euro]2.5 million later, the 30-room palace has been reborn as a stylish country hotel, an hour and a half north of Berlin. Bookings are up as German, Swiss and Swedish tourists discover the vast unpopulated landscape of lakes and nature reserves nearby.

For Westerners, this was long terra incognita, hidden behind the Iron Curtain. When the borders opened in 1989, visitors largely stayed away. Hotels were lousy, roads poor and the food largely inedible. Restitution wrangles and other post-communist legal hassles all but paralyzed the housing market. But over the past decade, all that's changed--most visibly along the newly discovered Baltic coast.

On the German islands of Rugen and Usedom, immaculately restored 19th-century villas line the beaches like pearls on a string. The magnificent seaside residence of the Mecklenburg Court at Heiligendamm has been reborn as one of the country's poshest resorts. Elsewhere, "people's resorts" where East German worker-heroes once frolicked in the Baltic waves for a couple of marks a day are now elegant watering holes for wealthy Western clientele. ...

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