- Hotel: Castilla Termal Palacio de Avellaneda (5-star) in Peñaranda de Duero, Spain
- Accommodation: 80 exceptional rooms and suites integrated into a Renaissance palace
- Wellness: Thermal spa supplied by certified mineral-medicinal waters
- Tariff: From €315 per night
The metamorphosis of a Renaissance masterpiece
Spanish hospitality welcomed a leading heritage address on 12 August 2026, the sixth by the Castilla Termal group. Following more than a decade of closure and a meticulous three-year restoration project, the Palacio de Avellaneda has been reborn as an exceptional five-star hotel. Classified as a historic monument in 1923 and state-owned since 1940, this 16th-century building has recovered its former glory in the heart of the medieval village of Peñaranda de Duero.
The works have successfully combined the preservation of period features · such as the carved coffered ceilings and colonnaded galleries · with the most demanding contemporary comfort.
An exceptional thermal experience in Castile and León
This is the sixth property signed by the hotel group Castilla Termal, a specialist in converting historical monuments into wellness sanctuaries. The establishment houses 80 rooms and suites ranging between 30 and 40 square metres, many of which overlook the famous Plaza de los Duques de Miranda.
The property’s major appeal lies in the purity of its thermal waters, certified as oligometallic by health authorities. The spa offers personalised treatments using these minerals with their renowned therapeutic properties, complemented by a future contrast hydrotherapy circuit.
One reservation must be made, however, and it is a major one for an establishment positioning itself as a thermal destination. The thermal pool and gym are not open at launch · the group announces their commissioning at a later date, without specifying when. The wellness area and dining are operational, but the core of the thermal promise is yet to come. Travellers booking for the water should know this before setting off.
The palace, its history and its classification
The palace was built in the 16th century by the Zúñiga y Avellaneda family and stands among the most representative works of the Renaissance in Castile and León. It is classified as a Bien de Interés Cultural, the highest level of protection for Spanish heritage, which strictly regulates any intervention on the structure. This explains the length of the project and the decision to restore rather than transform.
Tailored hospitality and exclusive canine gastronomy
The hotel adopts a very stringent policy regarding the welcome of four-legged companions. Each room booked with a dog benefits from dedicated amenities and a bespoke canine gastronomic menu prepared with duck, lamb and chicken. This special attention reflects the desire to offer a personalised stay to all residents.
Our perspective
Castilla Termal has built its model on a simple and rare idea in Spain: taking over monuments that the state no longer knows how to maintain and bringing them to life through hospitality. The Palacio de Avellaneda, closed for over ten years and publicly owned since 1940, is a textbook case.
The fact remains that the opening is partial. Announcing a thermal hotel without a thermal pool exposes the house to guest disappointment in its opening months, especially since the starting rate of 315 euros per night aligns with the group’s fully completed addresses. The bet on Burgos, a province away from tourist flows, remains perfectly clear: this is where heritage is available and competition is absent.
Practical information
- Address: Plaza de los Duques de Miranda, Peñaranda de Duero, Burgos, Spain
- Tarif: From €315 per night
