I'M STANDING in the small stone village of Villabuena de Alava marvelling at an incongruous addition to the local architecture.

Next to the 14th-century church is a seemingly precarious stack of colourful concrete and glass cubes.

Opened last year and named after the most widely planted white grape variety in Rioja, Hotel Viura is the latest modernist addition to a region already famous for the cutting-edge architecture of the Bilbao's Guggenheim, a 90-minute drive north.

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The museum's architect, Frank Gehry, went on to design the striking Marqu©s de Riscal hotel and restaurant in the medieval town of Elciego.

I'm amazed that this contemporary addition, created by Joseba and Xabier Aramburu, got planning permission in this ancient village.

Apparently the 300 locals are fond of its two bars.

With 43 wineries in and around the village, it's fitting that the 33-room boutique hotel draws inspiration from the world of wine: wooden doors that resemble casks, panes of purple glass and room numbers scrawled in chalk.

There's an industrial chic feel to the interior with polished concrete walls, chicken-wire screens on the stairwell and minimalist furniture.

My only gripe was not having a door on the bathroom, just a curtain.

The wine theme extends to the basement restaurant where striking golden barrels are suspended from the ceiling.

The food showcases traditional Riojan and Basque cuisine.

The locals have their own version of tapas, known as pintxos, which looks remarkably similar.

Slivers of tender Iberian ham and chorizo and a tempting array of cheeses.

The next evening, I have a delicious broth of seasonal vegetables and truffles, followed by haddock and snow peas.

The head waiter handpicks a superb white Rioja, the Vi±a Tondonia, from the extensive wine cellar, which also features a strong contingent of international wines.

The next day we explore picturesque Laguardia, a medieval walled town on a rocky hilltop backed by the fortress-like cliffs of the Sierra Cantabria.

During the Middle Ages the residents dug deep into the rock below their homes to create places for food and wine storage and refuge.

Much of the well-preserved village has been undermined by the tunnels so no cars are allowed inside its walls.

One of the most striking buildings is the Iglesia de Santa Mar­a de los Reyes with a beautiful late 14th-century gothic doorway decorated with sculptures of the Disciples.

While Rioja is associated with red wine, the white grape Viura, also called Macabeo, is becoming popular.

It produces mildly acidic and young white wines suitable for early consumption or blended with other varieties, both red and white, unoaked and oaked.

TO LEARN more about wine making, I take a tour of the Cune winery in Haro, Rioja Alta.

Owned by the Compa±­a Vin­cola del Norte de Espa±a, it was founded in 1879 by two brothers and remains in the family.

A fascinating hour-long tour explains the wine-making process from grape to bottle.

We visit a creepy wine "cemetery" where the best vintages are preserved for posterity, or until someone is willing to pay a princely sum for them.

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Cobwebs hang from the ceiling, apparently not poor housekeeping but to help create the right micro-climate to stop the wine degrading in storage.

You can't holiday in northern Spain without a visit to the iconic Guggenheim, Gehry's spectacular museum of titanium, glass and limestone hailed as the most important building of its time when it opened in 1997.

Visitors are greeted outside by a giant West Highland Terrier made of flowers by the US artist Jeff Koons, called Puppy.

The building's glass atrium is intended to evoke the famous rotunda of Frank Lloyd Wright's New York Guggenheim.

Bilbao's museum collection of art focuses on post-war painting and sculpture in America and Europe.

It has acquired key works from the likes of Willem de Kooning, Robert Motherwell, and Andy Warhol.

As I return to my stylish bolthole, I muse that none of them would turn their noses up at the latest modernist addition to the region.

GETTING THERE

Vueling (0906 754 7541/vueling.com) offers return flights from Heathrow to Bilbao from £75.

Hotel Viura (dialling from the UK: 0034 945 609 000/hotelviura.com) offers doubles from £124 per night (two sharing), room only.

Alava Incoming (945 141 800/alavaincoming.com) organises wine tasting tours from £8.50pp.

Spanish National Tourist Office: 00800 1010 5050/spain.info