In the medieval village of Peñaranda de Duero, in Spain's Castile and León region, a 16th-century Renaissance palace has been reborn as a five-star hotel. The Palacio de Avellaneda, built by the Zúñiga and Avellaneda family, has undergone a three-year restoration and is now the sixth property in the Castilla Termal luxury hotel group.
The palace, declared a national monument in 1923 and later acquired by the state in 1940, now offers 80 rooms and suites. Guests can expect contemporary amenities set against original stone arches, wooden ceilings, and period details. A night's stay in September starts at €314.60.
Rooms with a view of the plaza
The junior suites include a separate sitting area and overlook the Plaza de los Duques de Miranda, while the larger suites offer frontal views of the same square. The restoration aimed to preserve the palace's historical character while meeting the expectations of modern travelers.
Dining will be a highlight, with two in-house concepts planned. The Los Zúñiga Restaurant, located beneath the arches of the Renaissance cloister, serves local and seasonal produce. Its menu features shareable dishes such as a board of local cheeses with quince paste and dried fruit, alongside fish, meat, and salad options. A second venue, the Condes de Miranda Gastrobar, is set to open at a later date.
Thermal waters and wellness
The palace's waters have been officially classified as oligometallic mineral-medicinal and thermal by the Regional Government of Castile and León. This therapeutic water is central to the hotel's wellness offerings, which include body scrubs, massages, and facials. Plans are also in place for a thermal pool and contrast circuit.
For those traveling with pets, the hotel is dog-friendly. One dog per room is allowed with pre-reservation, and the hotel provides bedding and a dedicated dog-walking area. A special pet menu features duck, chicken, and lamb dishes.
The opening of Palacio de Avellaneda adds to Spain's growing portfolio of historic hotels, a trend that has seen similar conversions across the Iberian Peninsula. It also reflects a broader European interest in preserving architectural heritage while adapting it for contemporary use.
Peñaranda de Duero, with its castle, medieval walls, and traditional plaza, offers a glimpse into Spain's past. The hotel's location makes it a base for exploring the Ribera del Duero wine region, known for its robust reds, and the surrounding countryside.
As Spain continues to attract travelers seeking cultural depth, the Palacio de Avellaneda stands out as a destination that combines history, relaxation, and local flavors. Whether for a weekend escape or a longer stay, it promises an experience rooted in the region's heritage.


