As the world’s largest urban area, Mexico City moves at an invigorating pace – starting with its legendary traffic.

In 1519, when Spanish Conquistador Bernal Diaz first viewed Tenochtitlan, the ruined foundations upon which Mexico City would be built a few years later, he observed that “with such wonderful sights to gaze on we did not know what to say, or if this was real that we saw before our eyes.”

For modern travelers flying into Mexico’s capital over its urban speed by day or glittering expanse by night, such a sensation may also be tinged with trepidation — an air of excitement infuses the city. Mexico City (aka Mexico D.F., for “Distrito Federal”) still carries a trace of brimstone a decade after the mid-1990s, which saw the collapse of the peso under President Ernesto Zedillo’s Institutional Revolutionary Party (PRI), the signing of NAFTA, the rise of drug lords and the Zapatista revolution. These events helped foment a crime wave that left the city’s 25 million-plus inhabitants with little sense of security. Recalling Lady Caroline Lamb’s description of Lord Byron, Mexico City was “mad, bad and dangerous to know.”

Yet life today is decidedly sunnier on its streets. There is a spark to the city that reflects a newfound optimism in a land notorious for its fatalism. No one is suggesting that former President Vicente Fox (of the National Action Party, or PAN) worked any true miracles, nor that leftist Democratic Revolutionary Party (PRD) presidential candidate Andres Manuel Lopez Obrador, by crying foul in the recent elections (which saw the PAN’s Felipe Calderon narrowly elected victor), aided in the cementing of confidence. But business, like hope, springs eternal, and an understanding of D.F. culture can open opportunities for those with enterprise and zest.

Where to stay

The suburb of Polanco — a luxury shopping area north of Chapultepec Park, not far from famous La Zona Rosa — is the tried-and-true area for foreign executives to decamp. The hip W hotel chain has established itself here. The Mexico City W (237 rooms, room/suite rates range $279-429) offers 21st-century comfort and state-of-the-art conference facilities. Rooms include PCs with wireless technology. There is a cosmopolitan bar and the upstairs Solea Restaurant.

In the Bohemian enclave of Condesa, the coolest new hotel is Hotel Condesa D.F. (40 rooms, rates range from $175 for patio rooms to $395 for top suites), housed in a stately 1928 beaux arts building. One bar opens out onto an interior courtyard, and there’s another on the roof. Artistic, sophisticated ambience prevails.

The Gran Hotel Ciudad de Mexico (60 rooms, rates range $120-242, average $170) is an elegant Old World affair featuring art nouveau architecture with a 1908 Tiffany stained-glass ceiling. This City of Palaces glamour is offset by a modern business center and free Internet access. Near the city’s main plaza (Zocalo), the hotel’s rooftop restaurant, Terra Plaza Mayor, offers fine views of the Historic Center’s surrounds.

Where to dine

Countless restaurants offer both chile-driven local cuisine and international options, particularly Argentine, French, Japanese, Italian and Spanish. One of the greats for local flavor is Restaurante Arroyo (8 a.m.-8 p.m. daily). Specialties at this Mexican food institution include barbacoa de carnero (barbecued lamb) and carnitas (pork), and daily mariachi floorshows get the place thumping.

The San Angel Inn (1 p.m.-1 a.m. Monday-Saturday, 1-10 p.m. Sunday), a converted 18th-century hacienda, provides an oasis of tranquility amid the bustle of the city. Recipient of a Distinguished Restaurant of North America (DiRoNA) Award, the inn offers a menu specializing in international and Mexican cuisine. It’s a favorite of Mexican film stars and titans of business and politics. Don’t leave without sampling one of the wonderful margaritas.

Danubio (1-10 p.m. daily) has been part of the downtown landscape since 1938. It is first choice for a seafood lunch and also boasts a noteworthy wine selection. Danubio’s specialty is langostinos (baby lobster). The atmosphere here is convivial and lively.

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Inside the Mexico City Guide

Explore and share travel advice on:

• Getting there, getting around
  
• What to see and do in Mexico City
  
• Recommended hotels in Mexico City
  
• Restaurants in Mexico City
  

Required reading

• Doing business in Mexico City by Dean Foster

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ANTHONY WRIGHT lived a decade in Mexico City before returning to his native Australia last year. But the lure of Mexico’s capital is strong — he’ll relocate permanently to the D.F. in December.