In short… Grand, elegant, and inviting, The Palace Hotel in Madrid offers historic charm and modern comfort in a perfectly central location.
The surroundings…. Madrid is best explored on foot, and the Palace is located in the heart of the city. It is within walking distance to the Thyssen-Bornemisza and the Prado museums, as well as El Retiro park. Close by is the Barrio de las Letras, with charming book stores, design shops and restaurants. On Sunday morning, we walked from the hotel to El Rastro flea market, which took less than half an hour.
The backstory… The hotel is steeped in the history of Madrid. It was commissioned by King Alfonso XIII and opened in 1912. At the time, it was one of the most luxurious and modern hotels in Europe. The hotel welcomed illustrious guests like Pablo Picasso, Federico García Lorca and Salvador Dalí. During the Spanish Civil War, the striking wrought iron and glass domed Cúpula was used as an operating theater.
The hotel recently underwent a renovation by Ruiz-Larrea Arquitectura studio, with interior design by Lázaro Rosa-Violán. The project, completed in 2024, preserved the hotel’s iconic historic elements—like the iconic Cúpula—while the rooms feel modern, well designed and characteristically Madrileño.
The vibe… Luxurious without feeling stuffy. Modern art and unexpected installations like a dinosaur skeleton at the top of the lobby juxtapose playfully with the more stately old-world details like the 16th-century tapestries adorning the walls. The ground level was buzzy but not overcrowded. Throughout our stay, the staff was friendly, helpful and attentive.
The rooms… Bright, comfortable, and tastefully decorated, the room was a highlight of our stay. The unique wallpaper, inspired by El Retiro park, were reminiscent of old etchings you might come across in El Rastro. The room had plenty of closet space. After long days exploring the city, the room was a comfortable and luxurious place to unwind or take a little rest before going out again.
We stayed in the Deluxe Room, but also visited the Cervantes and Cortes Suites. Both were spacious, handsomely decorated, and felt like stepping into an impeccable Madrid apartment.
The food & drink… Breakfast in the Cúpula was the perfect way to start the morning: delicious coffee, pastries, beautiful jamón ibérico, fresh fruit and tortilla de patatas, all under the intricate stained glass dome.
The restaurant also serves lunch and dinner, and the adjoining 27 Club (named after The Generation of 1927, a group of Spanish avant garde poets who frequently met at the bar) serves classic cocktails and tapas.
The wellness… There is a sunny, decently appointed gym on the top floor.
Is it kid-friendly? Yes, we saw plenty of families in the lobby.
Be sure to… Have breakfast in the Cúpola!
Parting words… The Palace has old world elegance, comfortably modern rooms with personality and charm, and a truly iconic location.
Date of stay… Dec 26-28, 2025
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