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Betws-y-coed developed in the 19th century as a mountain resort, making the most of its of its position in a wooded gorge. It does get extremely touristy at peak-time, yet it's easy to escape the crowds by taking any of the number of paths into the surrounding forests. There is an easy riverside stroll to the west, leading to the Miners' Bridge, which links into a longer circular walk taking in Llyn Elsi, a very prettily sited reservoir looking towards the pyramidal peak of Moel Siabod.
The cottage Ty Gwyn has good food, and the Pont y Pair and Waterloo Hotel are useful too.
Head south-west on the A470 along the Lledr Valley. You pass 13th-century Dolwyddelan Castle. Set on a sparsely wooded crag, it is on a modest scale but has gorgeous views. It was erected by Llewellyn the Great and has a fragmentary curtain wall as well as a rectangular keep restored in the 19th century.