San Diego sits in the south western corner of the United States – just north of the Mexican border – in California.

SARAH DAVE stopped dreamin’ and started exploring.

If you squint you can see Mexico. I’m standing in the sky lounge at the Top of the Hyatt, the 40th floor lounge bar at the stunning twin-towered Manchester Grand Hyatt waterfront hotel in dynamic San Diego, Southern California.

The bustling city sprawls below and, but for some pesky clouds obscuring the horizon, you can see Mexico on a clear day.

Halfway through a week-long holiday in this jewel of the south, we’ve barely scratched the surface.

San Diego is America’s eighth largest city and by virtue of its history – claimed by the Spanish empire in the 16th Century – and location – bordering Mexico – has a diverse cultural mix and atmosphere. It is also a huge naval base.

We came to explore the city and visit the world-renowned annual Comic-Con event.

San Diego International Airport is just five or 10 minutes from the city centre so no worries about huge taxi fares.

And talking of budgets, what a great time to visit the US, when you get more bang for your buck with pretty much two dollars to the pound – but hurry before rates fall.

The main areas of San Diego include the hip Downtown area, serviced adequately by a trolley and bus system and including the must-visit Balboa Park – which also holds the world-renowned San Diego Zoo – Coronado with its white sandy beaches over the bay, and then the Old Town, Mission Bay, Ocean, Mission and Pacific beaches in the northwest along with the beautiful La Jolla (pronounced La Hoya).

We first stayed in the new Pearl Hotel in Point Loma, just two miles from the airport and a 10-minute taxi ride to Downtown.

It really is a pearl as it’s a stylish bolthole in an otherwise shabby neighbourhood.

It has a beautifully designed 60s/70s theme and a small heated pool, including a projection screen which shows cool evening movies at its Dive-In Theatre.

Its cosy restaurant serves dinner and cocktails and was always busy. West of Downtown it’s a good gateway northwest to the county’s most famous beaches.

As one guidebook aptly put it, Downtown is San Diego’s Lazarus. It used to be where drivers would put their pedal to the metal to get through.

Now it’s the best hangout ever.

Restaurants, hotels, shopping and nightlife abound.

You feel safe, welcome and are guaranteed a good time from high-end to budget.

The most hip area is the Gaslamp Quarter Historic District, where we were lucky enough to try out two lush hotels, The Keating and The Ivy, and nearby, by San Diego Convention Centre, The Manchester Grand Hyatt.

Just a couple of years old and designed by Pininfarina, the Italian company that makes Ferraris and Maseratis, it’s unsurprising a sports car-red lobby greets you at The Keating.

It’s contemporary, plush and luxurious but maybe because of the designer, it feels a bit harsh and machine-like in places. For dining and cocktails you can head down to its Minus 1 Lounge.

Just opposite is the antique chic The Bitter End (thebitterend.com) bar where its signature Black Martini is a must-drink.

Also Downtown was our favourite hotel of the trip, The Ivy. Luxurious and unpretentious – despite attracting the rich and the racy – The Ivy includes a rooftop bar and pool, and hot talk-of-the-county nightclub Envy.

On arrival we had a complimentary cheeseboard, dried fruit and two glasses of Champagne delivered to our room.

Delights include Bath Butlers who run specially prepared candle-surrounded baths for you and daily guest activities including lessons on how to play cards, deejay and pole dance.

Towards the bay area, the colossal twin-towered Manchester Grand Hyatt holds court with 1,625 guestrooms.

It is excellent for families and business folk and has facilities to match, from a range of restaurants and cafés to a gym, two pools and spa.

No-nonsense, with all the amenities you would need.

And just next door by the marina is shopping and fast food at Seaport Village.

The hotel is just a few minutes walk to the convention centre and seconds from the waterfront where you can embark on a harbour boat trip or visit the breathtaking USS Midway aircraft carrier museum.

We went on a Harbour Excursion (sdhe.com), a two-hour full bay tour (£12) which takes in both the north and south bay and includes the submarine base, Point Loma lighthouse, the sea lions and Dolphin Training Centre, Coronado Bay Bridge and all manner of US Navy Destroyers and Frigates. But you can opt for just one hour (£9) and one bay.

I cannot emphasise enough what a worthwhile trip this was – the commentary was interesting and two hours flew by.

A good place for dinner afterwards is the Fish Market restaurant in North Harbor Drive (thefishmarket.com) – top quality ingredients, good value and a buzzing atmosphere where you can see the fresh food prepared.

Sweet tooths will appreciate pudding at Ghirardelli ice cream and chocolate shop (643 5th Avenue) which shuts gloriously late at 1am on Fridays and Saturdays, midnight usually.

SD- TOP 10

- Balboa Park (balboapark.org). This 1,200-acre site hosts most of the city’s museums (16), theatres and the 4,000-animal San Diego Zoo (sandiegozoo.org). Similar sights include SeaWorld in Mission Bay and Legoland in Carlsbad.

- San Diego Harbour Excursion (sdhe.com). Back on the mainland catch the citywide bus tour citysightseeing-sd.com.

- Take the 15-minute ferry across the bay to Coronado for its white sandy beaches and colonial elegance. We hired bikes and cycled to the seafront.

- Take a day trip to hectic duty-free Tijuana in Mexico. The border is a half-hour taxi (about £21). Load up on cheap clothes, nick-nacks and authentic Mexican food in Avenue Revolucion (tijuanaonline.org). Take the trolley back to San Diego for around £1.30 one-way (sdcommute.com).

- Sink the cash at boutiques in 4th, 5th and 6th Avenue and Westfield Horton Plaza mall, both Downtown, or go upscale at Fashion Valley in Mission Valley. Bargains at Las Americas.

- Party in the Gaslamp Quarter’s 40 clubs and bars (gaslamp.org).

- Cheer on hometown baseball team the Padres at the new 42,000-seat Petco Park stadium.

- Flee Downtown to scenic La Jolla for this classy seaside zone. For a livelier experience, party on Mission, Ocean or Pacific beach.

- Imbibe San Diego’s Spanish and Mexican roots in Old Town, the area at Juan Street.

- You’ve missed this year’s but register now for Comic-Con 2009.

SARAH travelled direct to San Diego with Zoom airlines. As the service has now been suspended, alternative airlines can be found on www.flyzoom.com

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