Urban Retreat Open-air restaurants, crowded bazaars, and a swoon-inducing location on the Bosporus—this is a city made for wandering. You’ll find Istanbul at its most alluring in the quaint neighborhoods on the European side of the strait. For lunch, try the sea-bass sandwiches with olive tapenade, roasted red peppers, aruguala, and an eggplant spread at Mangerie (lunch for two $50), a rooftop spot in the Bebek district. In the waterside Arnavutköy area, Dilara Erbay dishes up grilled fish at Abracadabra (dinner for two $75), housed in a wooden mansion. The nearby Rumeli Hisari fortress has panoramic views of the strait, making for a picturesque detour. After dark, there’s Anjelique, a sultry waterside club set against the glowing Baroque Ortaköy Mosque. Take your pick of the new hotels: the 10 Karaköy (doubles from $220), in 1875 Neoclassical building now modern and stocked with Malin & Goetz toiletries; the St. Regis (doubles from 525) a new-build decorated with contemporary Turkish scultpures and paintings; or the Raffles Istanbul (doubles from $680), with a 33,000-square-foot spa equipped with three hammams and two pools.