New luxury hotel in a 16th‑century palace
9 September, 2026Castilla Termal has opened its sixth hotel in Spain after transforming the historic Palacio de Avellaneda, in Peñaranda de Duero (Burgos), into a 5‑star establishment. The building, constructed in the 16th century and declared a Site of Cultural Interest, is one of the main examples of the Renaissance in Castile and León.
The new Castilla Termal Palacio de Avellaneda has 80 rooms and suites, event spaces and two gastronomic options based on local and seasonal produce. One of them, the restaurant Los Zúñiga, is located under the arches of the Renaissance cloister.
Wellbeing also plays a prominent role. The hotel has a spa, wellness area and waters declared mineral‑medicinal and thermal by the Regional Government of Castile and León, as well as an outdoor pool and rooms offering different treatments.
The opening strengthens Castilla Termal’s presence in heritage and rural destinations in Spain. The chain plans to open another establishment in 2027 in the Monasterio de San Jerónimo de Cotalba, in the Region of Valencia.