The famous German Hill Country town of Fredericksburg is getting the spotlight as a must-visit destination in Southern Living's 2026 South's Best Awards, as well as its new boutique hotel, a café in Marble Falls, and an iconic Austin barbecue joint.

Fredericksburg claimed the coveted No. 3 spot in the publication's ranking of the Best Small Towns in the South.

The annual awards are determined through third-party online surveys of Southern Living consumers from July 9 to September 9, 2025. Over 17,000 respondents rated their favorite places across the South, the report said.

The top two best small Southern towns were St. Augustine, Florida (No. 1), and St. Simons Island/Golden Isles, Georgia (No. 2).

Specifically, Southern Living gave a nod to Fredericksburg's growth and the recent addition of The Albert Hotel, which opened in 2025. The Albert Hotel was ranked the 10th best new hotel in 2026.

"The city’s premier full-service luxury hotel revives a cluster of 19th-century landmarks, from a historic saloon to a former pharmacy that is now a cafe, deli, and artisan market," the report said. "Alongside the 105 minimalist guest rooms, a holistic spa and a limestone pool provide moments of quiet relaxation."

We all need a relaxing day poolside at the Albert Hotel pool oasis.Photo by Chase Daniels

As the Fredericksburg area grows, Southern Living said, it still maintains its cozy, small-town feel.

"Fredericksburg still wears its German heritage on its sleeve, evident throughout Main Street architecture and a lively cluster of biergartens and long-running seasonal festivals," the report's author wrote. "Wine lovers will feel particularly at home thanks to more than 100 wineries and tasting rooms scattered throughout town and the surrounding countryside."

It's no wonder Southern Living decided to locate its 2026 Idea House there.

Popular events like the Fredericksburg Food & Wine Festival and locally focused programs like the Texas Hill Country Wineries wine passports draw in crowds from all parts of Texas. The town is just over an hour away from San Antonio, which makes it a great weekend or spring break escape. San Antonio-area travelers might even spot small patches of bluebonnets during their road trip through the Hill Country.

No matter which route you take, travelers should book extra time for a pit stop through another small Texas town called Marble Falls, which is home to one of Southern Living's most legendary Southern restaurants: Blue Bonnet Cafe. According to the report, its longstanding staff members embody the idea of "southern hospitality" every day.

"There’s one real reason the Blue Bonnet Cafe is so widely respected: The folks who run the place have been holding this small-town diner to high standards for years," the report said.

Blue Bonnet Cafe opened in 1929 and was later bought by the Kemper family in 1981, who still own and operate it today. Southern Living recommends ordering one of the blue plate specials, and a slice of pie is a mandatory treat.

"With 15 options — from luxuriously creamy to bright and fruity — you’re guaranteed to find one you’ll love," the report said.

Ordering a slice of pie is a requirement, not a suggestion. Blue Bonnet Cafe - Marble Falls, TX/Facebook

The only other Texas destination to earn recognition in Southern Living's annual awards was the iconic Franklin Barbecue in Austin, which was crowned the best barbecue joint in Texas by the publication's readers.

"Fans from around the world queue up for hours to experience the craftsmanship that has made Franklin a barbecue celebrity," the report said. "Flawless prime-grade brisket with a sweet, tangy glaze is still the showstopper here, and it’s accompanied by the quintessential Central Texas lineup of pork ribs, turkey, and jalapeño-Cheddar sausage."