Malmedy occupies a picturesque site in the centre of a bowl at an altitude of 340m, surrounded by steep wooded hills on the River Warche. In the vicinity there are ski slopes at Ferme Libert, to the north, and Ovifat. Malmedy formed an abbey principality with Stavelot until 1794. It is well known for its paper mills and tanneries. Don't let the "baisers de Malmedy" (Malmedy kisses) fool you! They are just tasty local cakes (but excellent nonetheless).