Petit Palace Posada Del Peine

Posada del Peine claims it was the first hotel ever known in Spain. We doubt this is the case, but we'll give it snaps anyway. Del Peine is one of the cool club of well-designed hotel chains in Madrid that have gained popularity over the past few years. What's noteworthy is that Posada del Peine manages to be good for travelers while maintaining its four-star status.

The hotel's rates are reasonable because it belongs to a Spanish chain that regularizes its rates across the board. Among Madrid's Petite Palace properties, Posada del Peine is our pick.

Why? Well, thanks for asking. It's in an historic building, more than 400 years old. Its downstairs "cave" contains an old wine cellar of sorts that is open for a breakfast buffet.

Add glass-enclosed bathrooms, shaving mirrors, hydro-massage showers, flat-panel televisions, and free Internet access. On the style front, rooms feature black curtains, matched with backboards and desk chairs.

Posada del Peine's impressive design integrity, affordable indulgence—are those trash bins actually made out of leather?—and smack-dab central location make it a splurgeworthy pick.