Plaza Mayor / Madrid de los Austrias

Pestana Collection Plaza Mayor

★★★★★

The Pestana Collection Plaza Mayor is one of very few hotels that let you stay on the Plaza Mayor, the grand arcaded square at the centre of old Madrid, and its location is its whole appeal. The Portuguese Pestana group restored a seventeenth-century baroque building on the square as a heritage hotel, combining its historic architecture — thick walls, old beams, a courtyard — with modern comforts. The entrance is on Calle Imperial, on the southern edge of the square, and the hotel's café-restaurant, Café de la Plaza, has both an interior patio and a terrace out on the Plaza Mayor, so you can take breakfast or an evening drink with the whole square spread before you. Some rooms have balconies or windows overlooking the Plaza Mayor, with views of the painted Casa de la Panadería and the statue of Philip III; others look onto the surrounding lanes or the internal courtyard. On the roof, a small seasonal outdoor pool and a rooftop bar look across the tiled roofs and spires of the Madrid of the Austrias — a rare treat in the old town, open from late morning to early evening in the warmer months, weather permitting. The surroundings could not be more central: the Mercado de San Miguel is two minutes away, the Puerta del Sol five, and the Royal Palace and the tapas bars of La Latina ten. On Sunday mornings the Rastro flea market begins just down the hill, and in December the square's Christmas market is right outside the door.

Who it suits: first-time visitors and couples who want to be in the most historic heart of the city, and anyone who likes the idea of waking up to the Plaza Mayor. It is an excellent base for walking: almost every major sight in old Madrid is within fifteen minutes on foot, and Sol metro station gives quick connections elsewhere. Families can manage well too, with the square traffic-free and the Retiro a short metro ride away.

Living in it: ask specifically for a room with a view over the Plaza Mayor if that is the reason you are booking; these are the most sought-after and the most expensive, and inside rooms are quieter. The square is lively by day and into the evening, with street performers and terrace crowds, but it calms late at night. The rooftop pool is small and limited in capacity, so do not expect a resort pool — think of it as a place to cool off and enjoy the view on a hot afternoon. Breakfast on the terrace is a memorable start to the day before the tour groups arrive. Avoid eating at the touristy restaurants on the square itself; the better tapas bars are a few minutes away in La Latina and on Cava Baja.

Value: rates sit in the upper-middle range for central Madrid, with premiums for square-view rooms and peaks in spring, autumn and during the December Christmas market. The value case is location and atmosphere — there is nowhere more central or more historic to stay in Madrid. Choose it if you want old Madrid outside your window and do not mind a little bustle.