5 Things To Know About The Palace, a Luxury Collection Hotel, Madrid [Review]

Madrid is a vibrant, incredible city with some of the most beautiful hotels in the world.

During a December 2025 visit, one hotel stood out as one I’ll return to. The Palace, a Luxury Collection Hotel, Madrid, is a historic gem in the heart of the city.

Not only was the hotel stunning, but the opportunity to explore the surrounding area enhanced my overall visit. Best of all, booking the hotel using points and hotel credits made my stay especially sweet.

Here are the key things you should know if you’d like to experience this grand hotel.

1. It’s One of Madrid’s Most Iconic and Largest Luxury Hotels

The Palace, a Luxury Collection Hotel, Madrid, was built in 1904 and is one of Madrid’s first luxury hotels. Its bar became an artistic and literary hub in the 1920s, hosting Pablo Picasso, Salvador Dalí, and Spanish filmmakers. The hotel was even mentioned in works by Ernest Hemingway. Later, it served as a hospital during the Spanish Civil War.

It is currently Madrid’s largest hotel, with 470 rooms. With belle époque and art nouveau architecture, the hotel shines after its recent renovation under the Marriott brand.

With spectacular features, including La Cúpula restaurant’s rotunda with its art nouveau dome, there’s no shortage of grandeur at the hotel. The 1,875 panes of ceiling glass were each restored during the hotel’s recent renovation.

The hotel’s bar, named the 27 Club after the Generation of ’27 creatives who frequented it, is a classic speakeasy paying homage to the past. Before visiting the hotel, conducting some quick research on how Spain supplied wine and brandy to the U.S. during Prohibition, as well as on the famous people who frequented the bar, will enhance your time there.

Having a cocktail at the 27 Club is like stepping back in time.

2. You Can Book Your Stay With Points and Hotel Credits

The best news about staying at The Palace is that you can book it with points or card hotel credits. The hotel isn’t inexpensive, but you can achieve extraordinary value compared to paying cash hotel rates, and you’ll receive on-site benefits during your stay.

Here are some options for booking your stay with points and hotel credits.

Booking Through American Express Fine Hotels + Resorts

Cardholders of the Platinum Card^® from American Express and The Business Platinum Card^® from American Express have access to Fine Hotels + Resorts (FHR) and The Hotel Collection. The Palace is an FHR property, meaning cardholders have access to perks including on-site benefits and up to $600 in annual hotel credits (up to $300 semiannually).

On-site FHR benefits include daily breakfast for 2, an upgraded room upon arrival (when available), early check-in and late checkout (when available), a $100 food and beverage credit, and complimentary Wi-Fi.

Marriott Bonvoy elite benefits are also honored when you book through FHR.

Booking Through The Edit by Chase Travel

The Edit by Chase Travel is a curated collection of worldwide luxury hotels available to Chase Sapphire Reserve^® and Sapphire Reserve for Business℠ cardholders.

Cardholders receive up to $500 in hotel credits each year when booking a prepaid stay of 2 nights or longer with Chase Travel. A $250 credit is available for each stay.

Here’s an example of using an Edit credit for a 2-night stay. The total for the stay of $1,046, minus the $250 credit, leaves $796 to be paid with Chase Ultimate Rewards points or the card. The Edit properties qualify for Points Boost, which results in a value of up to 2 cents per point. In this case, 48,200 points cover the $796.

Additionally, valuable on-site benefits include daily breakfast for 2, a $100 property credit, room upgrades when available, and early check-in and late checkout.

Any eligible Marriott Bonvoy elite benefits are also honored.

Booking Through Marriott Bonvoy

Marriott Bonvoy members have another way of booking their stay at The Palace. Using Marriott Bonvoy points can be a cost-effective way to stay at the hotel.

Using Marriott Bonvoy award night certificates is also an option when points rates for the hotel are low. For example, you can use an 85,000-award-night certificate, earned on the Marriott Bonvoy Brilliant^® American Express^® Card, when rooms reach that level. You can also add up to 15,000 additional Marriott Bonvoy points to the 85,000-point award certificate.

You can also use a 50,000-award-night certificate earned on the Marriott Bonvoy Bevy^® American Express^® Card and add up to 15,000 extra points when the rate is 65,000 points or less. You can earn the award certificate by spending $15,000 on the card in a calendar year.

3. Your Marriott Bonvoy Status Will Be Honored

Marriott Bonvoy loyalists and elite members should appreciate their associated benefits being honored at the hotel. Whether you book The Palace using Marriott Bonvoy points, through Amex FHR, or through The Edit by Chase Travel, you receive any applicable Marriott Bonvoy elite benefits.

Though benefits from FHR or The Edit can overlap with Marriott Bonvoy benefits, you may still receive additional benefits. For example, during my recent stay, I received a double-room upgrade to a suite, a hotel-night stay credit, Marriott Bonvoy points, and an additional welcome amenity.

Don’t forget to use Marriott’s fifth-night-free benefit if you plan to stay longer at the hotel. Marriott Bonvoy members who book 5 consecutive award nights receive 1 night complimentary.

Be sure to add your Marriott Bonvoy loyalty number to your reservation, regardless of how you book, to unlock additional benefits.

4. The Hotel’s Location Is Superb

With the Prado Museum, Retiro Park, and Plaza Mayor nearby, the hotel is within walking distance of many of Madrid’s attractions. Additionally, the neighborhood behind the hotel is a magical labyrinth of shops, bars, and restaurants.

When you walk out the door of The Palace, you’ll find Madrid’s grand boulevards, historic buildings, monuments, museums, and plazas. Behind the hotel, the atmosphere is quieter and more quaint, featuring an antique store, tapas bars, restaurants, bakeries, clothing stores, and a more neighborhood-like vibe. It’s the best area for exploring.

The Gran Vía and Banco de España metro stations are nearby, making travel from the airport by public transport easy. The taxi service takes about 30 minutes, and rates are fixed. At the time of writing, they were about $35 each way.

Location matters when you want to explore a city, and The Palace checks all the boxes.

5. The Hotel Is Light on Amenities

Don’t expect a stay at The Palace to be hotel-centric. You won’t find a large number of restaurants, bars, a pool, or numerous common areas at The Palace. There are meeting rooms, 1 restaurant, a speakeasy bar, and a fitness center. You will find posh surroundings, clean, elegant rooms, and exceptional service.

Plus, because of the hotel’s ideal location, you won’t be at a loss for things to do. Everything Madrid has to offer is right outside your door when you stay at The Palace.

Final Thoughts

A long-weekend getaway to The Palace, a Luxury Collection Hotel, Madrid, is a worthy addition to your travel list. With several booking options that can unlock luxury perks and good value, you won’t pay top dollar to stay there.

I’m not sure you would want to stay a week at the hotel, but if you wanted a base to explore the city, it would certainly work.

I stayed only 1 night at the hotel, which was not nearly enough. Now, I’m planning my return. With Chase Ultimate Rewards points, American Express Membership Rewards points, and Marriott Bonvoy points, I’ll have several options for booking an affordable stay.