Gramado is a mountain resort town located in the southernmost state of Brazil, Rio Grande do Sul. Influenced by 19th-century German settlers, the town has a Bavarian feel with alpine chalets, chocolatiers and craft shops. Gramado is also known for its displays of Christmas lights and hydrangeas in bloom in spring. Lago Negro offers boat rentals and forest walks, while the Serra Gaúcha mountains have hiking and mountaineering trails.