Is this the most dreamworthy location in Paris?

Make like Marlene Dietrich and Carrie Bradshaw in enchanted, expensive elegance.

Much more than just somewhere to sleep, this 109-year-old hotel has been officially recognised by the French government as a piece of "living heritage". It is one of a handful of five-star properties in Paris designated as a "palace hotel" and has hosted everyone from Marlene Dietrich to Carrie Bradshaw, who stayed here during the final two episodes of Sex and the City, and reunited with Mr Big in the lobby.

As you might expect, prices are sky-high, but the hotel delivers plenty of bang for the buck.

The eighth arrondissement is Paris at its most exclusive. Set on one of Paris's most expensive shopping streets with the Seine close at hand (a strollable distance even in stilettos), the hotel's picture-perfect facade is made of cut stone and decorated with carnation-red awnings.

Parisian accommodation comes in many forms, from the boho bolthole in the Marais to the louche left bank hideaway. When you want the go-for-broke, no-expense-spared Paris hotel, this is the place to come. Everything about it is elegant, from the staff at the reception desk to the interiors. The marble lobby is grand despite its intimate dimensions; the real knock-your-socks-off moment comes when you step into La Galerie, an elegant corridor leading to the rooms that doubles as a cafe where a harpist plays and a superb afternoon tea is served.

Rooms come in two styles: art deco or classic Parisian. I have been upgraded to a junior suite - the size of a small apartment - which falls into the classic category. With dove-grey walls, magenta highlights and a marble bathroom, and a view into the inner courtyard with its ivy-covered walls, it is among the most enchanting places I have ever stayed. This room doesn't just look good, however; every detail has been thought of, from the perfectly positioned power points to the soundproofing and the blackout curtains. The service is impeccable with every request, from a shoeshine to an ice-bucket top-up, dealt with efficiently.

For two decades, superstar chef Alain Ducasse oversaw the kitchens at the Plaza Athenee. Last year, young gun Jean Imbert took over the running of the hotel's restaurants: the casual Le Relais Plaza, the al fresco La Cour Jardin (only open in summer) and the flagship Jean Imbert au Plaza Athénée, which gained its first Michelin star just nine weeks after opening. Imbert didn't just revamp the menus; he also had the main dining room re-done in grand style. If you can't afford dinner - and with a starting-price of 320 euros, many of us can't - you might want to splash out on breakfast instead. Taking a seat at the 12-metre long table of Breccia marble, beneath crystal chandeliers that cast a glow onto the 20,000 gold leaves bedecking the dining room walls, is an experience worth having.

This neighbourhood is Paris's high-fashion hub and you don't have to get out your credit card to immerse yourself in the world of haute couture. The compact Yves Saint Laurent Museum a few blocks away has now been joined by an expansive new Christian Dior museum directly opposite the hotel. The 2000sq m museum offers a look at 75 years of fashion history and is a must for anyone who loves design.

The little things really do count. When I arrive, the doorman greets me by name - even though I've never been here before. Outstanding.

Ute Junker was a guest of Plaza Athenee