My wife and I were in Chiang Mai last year. When we initially got into town, we spent a night at the Sheraton, which was a total dump. So, I picked up one of the local expat magazines (conveniently provided by the Sheraton) and noticed an article that discussed several new boutique luxury hotels that had just opened up in the area. We gave one of them a call -- Baan Deva Montra -- and the resort's owner agreed to come into town and rescue us from hotel hell.
Baan Deva Montra is located about 20 minutes outside of downtown Chiang Mai in the middle of banana and farm fields. The accommodations consist of 10-15 cottages and villas. The cottages were a little lower quality, but the villas (in which we stayed) had their own private pools, a veranda out back, a/c, t.v., dvd player, etc. Everything was very clean and well-maintained (brand new), and the resort was totally peaceful and relaxing. The three middle-aged women who run the place are absolutely the nicest people you will ever meet, and they really went out of our way to make us feel at home. Because the resort is located out of town, they agreed to shuttle us take us in to town whenever we requested. They even took us to one of the local villages to buy souvenirs. (Once, they picked us up from our cooking class -- Thai Cookery School -- and asked if they could drop by the store on the way back to the resort. It's like we were their kids.) And the food: the best we had in Thailand. No joke. Breakfasts of fresh fruit and banana pancakes, and fantastic dinners out on the deck.
By the time we left, it felt like we were family. Seriously. When we were there, they were still working out some of the kinks (for example, they still had no way of running credit cards), but I would return in a heartbeat. I haven't been to some of the other luxury places in town (like the Rachamanka). I suspect that Baan Deva Montra is perhaps not QUITE as nice, but it more than makes up for it with the quality of service, the quaint location, and the friendliness of the people running the place. We stayed at the Peninsula in Bangkok for a couple of nights, and next time we're in Thailand, we'll probably spend one fewer night at the Peninsula and one more at BDM. It was that enjoyable.
I'd post photos, but all our photos are print, not digital. They have a website, and you can book online. If you don't have completely ridiculous questions, feel free to e-mail me.
This review is the subjective opinion of a TripAdvisor member and not of TripAdvisor LLC