We were in Luxembourg for the first time this month, and really enjoyed it. The city is small and walkable and the tram network is decent.

The Luxembourg City Museum, Museum um Feschmaart (history museum) and Musee Drai Eechelen (fortress history museum) are all well worth seeing. We enjoyed riding the funicular (free) and checking out the cityscape from the Pfaffenthal elevator, which has a glass-floored viewing platform 65m above the ground. We also had a nice walk through the forest below the Drai Eechelen Museuum.

We particularly enjoyed the Royal Hamilius rooftop garden on top of the Galeries Lafayette department store. Amazing views of the city in all directions. It was a nice treat that we discovered only by accident when we were already at the store.

In terms of hotels, we're big fans of the Ibis chain and seek them out in European cities. There are multiple locations around the capital.