Review: The Palace Hotel, Luxury Collection, Madrid

Introduction

We often talk about flexibility in the points and miles world, and this trip was a beautiful example of just how that can work out. We wanted to go on a trip for my birthday and initially settled on our destination after having secured our transatlantic flights at the jaw-dropping “off-season” pricing with Iberia. Given the flight’s arrival in Madrid, we thought it would be a great opportunity to visit the Spanish capital. After a bit of a misconnection with our first set of accommodations (via a home rental platform), we ended up finding ourselves standing in the street at 3:55 PM looking for a new place to stay. Fortunately, I had recently achieved platinum status with Marriott Bonvoy (the premier hotel rewards program available to Canadians) and they had a plethora of stunning properties in the area. We were feeling “spendy” so we filtered to “luxury” brands and quickly settled on The Palace, a Luxury Collection hotel.

Marriott’s Luxury Collection is, perhaps, my favourite hotel collection in the world and I can’t think of a time I’ve been disappointed with the choice, so it seemed like a fun last-minute change of plans. Besides, we were curious to see whether a last‑minute reservation would still deliver on luxury and elite benefits. The results were better than we could have hoped - especially for Bonvoy loyalists.

Exterior view of The Palace Hotel, Madrid

The hotel sits in Madrid’s Golden Triangle, directly across the street from the Prado Museum and around the corner from El Retiro Park, a beautiful green-space in the centre of city. Additionally, the Puerta del Sol and many of the city’s monuments are an easy 10‑minute walk away. We found the location perfect, not just for sightseeing but for indulging in the capital’s cocktail culture as several world‑class bars are within a few blocks. Despite its centrality, the hotel’s façade and plaza feel removed from the bustle and provide a sense of arrival each time you return. The finely detailed entry stands tall on the street corner providing a true sense of place and opens up into stunning marble across an open-concept reception that leads into artistic stairways, the lifts, and the entrance to the famed dining hall. It’s easy to see why this property has hosted dignitaries and travellers since 1912. And now, fortunately for us, following a 90‑million‑euro renovation, the hotel operates under Marriott’s Luxury Collection and participates in the Marriott Bonvoy program.

Booking and Check-in

We booked a standard room on the Marriott Bonvoy app at 3:55 p.m. and arrived at 4:05 p.m. Despite the short notice and the fact that a major conference was in town, the front‑desk team welcomed us warmly. Our elite status normally confers complimentary upgrades, but none were available. In lieu of a suite, the manager offered two cocktails at the hotel bar (a €60 value) and had a handwritten welcome note waiting in the room along with our welcome amenity. This personalized touch set a positive tone and underscored the hotel’s effort to recognize Bonvoy members even when room upgrades aren’t possible.

The Palace Hotel - Lobby / Reception

Rooms and Suites

Though we didn’t receive an upgrade, our Deluxe room felt decidedly regal. When you first enter, the quality of the renovation is immediately apparent. The entryway is spacious and has a door a few feet further along that leads into a positively giant bathroom for a property in the heart of a city like Madrid. Moving past the bathroom one can see the sitting area at the end of a short hallway before looking to their side to find the king bed surrounded by hand-painted artwork. Furnishings combine rich woods with contemporary touches; green velvet pillows and a tufted stool give a playful elegance. Storage is thoughtfully arranged, with a compact closet that still accommodated a large suitcase, a medium suitcase, and 4 carry-on bags. Upon arrival, our table was set with a chilled bottle of cava, local macarons and the aforementioned handwritten note - a delightful welcome for a last‑minute booking.

The bathroom, tastefully done in cream‑ and brown‑toned marble, retains a classic luxury atmosphere while incorporating modern fixtures. The highlight is the walk‑in rainfall shower, lined with blue‑and‑white Talavera tiles depicting an aerial view of Madrid’s Royal Botanical Gardens. It’s easily one of our favorite hotel showers in Europe, with strong water pressure and quality toiletries.

Additionally, the mattress was one of our favourites in recent memory but, perhaps what stood out above all, was the soundproofing. It was incredibly well done for a hotel placed so centrally in such a lively city. One final noteworthy point for me, as always, is the AC, which worked wonderfully. All that said, I must admit that the working space was relatively cramped and it would have been a bit uncomfortable had I needed to spend extensive time editing/writing. Lastly, though more related to the hotel being near capacity, I must say that we ended up with a room on a “low floor” and without much of a view despite the property overlooking the Neptuno Fountain.

Dining: Breakfast and Bars

Breakfast is served under the hotel’s stunning stained‑glass cupola, originally designed by Eduard Ferres Puig and painstakingly restored. This setting alone makes morning coffee feel like a special occasion. The Bonvoy elite breakfast benefit here is hands‑down one of the best we’ve experienced in Europe’s portfolio. It is offered on arrival to all guests with platinum status or above and it is, undeniably, the better choice as a welcome benefit when compared to 1000 points. In addition to a lavish buffet of fresh fruit, Iberian cheeses, charcuterie, house‑made pastries, hot eggs, etc., guests can order certain à la carte dishes at no extra cost. A chef will carve jamón ibérico to order, and the staff cheerfully deliver custom omelets, specialty coffees, sparkling cava, or hand-pressed juices.

Beyond breakfast, the hotel currently operates two dining venues: La Cupula and the 27 Club. La Cupula offers creative takes on Spanish classics (think cod “churros” and juicy beef Wellington). The 27 Club, a cozy wood‑paneled lounge, serves tapas and Prohibition‑inspired cocktails. As part of our check‑in gesture, we enjoyed two bespoke cocktails here; the bartenders happily customized drinks based on our preferences and served up two Old Fashioned variants. Additionally, the hotel offers an “epicurial moment” daily where they tell stories about famous past guests of the hotel bar, the history of the bar’s inception, and offer complimentary cocktails inspired by said guests. It’s worth noting that it is the same staff and similar story/cocktail each night… So you may or may not want to go every single night like we did…

Bonvoy Points and Rates

Despite its grandeur, the rates for this hotel are on the more reasonable side for a place of its stature in the capital city of a highly frequented EU country. Points rates in shoulder season (my personal favourite time to visit the arid city of Madrid) start at just 56k per night while cash rates for the same month run around $572 per night. As you can see, this puts you at 1.02 cpp already (above the standard valuation of 0.9 cpp in CAD). This can be stretched even further if you optimize the length of your stay to take advantage of the 5^th night free perk with Bonvoy points.

Simply put, pay for 4 nights on points and get the 5^th free. This allows you to get a five-night stay at a better ratio. For example, at the time of this publication, a stay from August 2^nd – 7^th would cost almost $3000 CAD ($2961) but the points price would be “only” 227k. Bringing a whopping 1.3 cpp (almost 50% higher than standard).

If you were inclined to stay on a cash booking, then I would consider booking via a portal like the American Express Fine Hotels and Resorts to earn a $100 property credit, access to some room upgrades, breakfast included if you didn’t already have it via your Bonvoy status, and some other perks such as late checkout.

Value and Bonvoy Program Considerations

For Bonvoy members, The Palace is an excellent use of points. Rooms start at 56,000 points per night, and the newly renovated accommodations feel comparable to properties that charge significantly more. It's also worth noting that 56k is within reach of the annual 35k free night certificates that come each year with the Marriott Bonvoy credit cards given that these can be "topped up" with up to 25,000 additional points. Platinum elite members and above are eligible for upgrades to premium rooms or suites when available, plus free breakfast for two and late checkout. Even without an upgrade, our experience shows that the hotel proactively compensates loyal guests (e.g., complimentary cocktails and personalized amenities). It’s worth taking a moment to highlight the quality of service throughout. Staff were proactive, friendly, and indulged my desire to continue improving my mediocre abilities in Spanish. The only service blemish throughout our stay was a single morning where the waiter was quite slow to take orders, bring food, and clear the table, which caused us to run a little bit late for a morning museum tour. That said, it was a particularly busy day that morning and he remained polite and professional, so we didn’t make much of this. It certainly wasn’t worth mentioning to the front desk staff and I’m only mentioning it here for the sake of completeness.

Remember to consider options like the 5^th night free when booking on points to lower the overall number of points for your stay and improve that cpp (cents per point). Additionally, the Marriott Bonvoy cards with American Express routinely offer attractive sign-up bonuses plus the ability to refer friends and family members to sweeten your points haul.

If you are interested in applying for a new card, specifically one of the Bonvoy co-branded cards, please contact me at: alex@rewardsmd.ca and I would be happy to answer questions about the program and direct you to the most advantageous sign-up offer/pathway.

Bottom Line

The Palace Hotel Madrid seamlessly blends history with modern comfort and is a perfect choice for anyone seeking a luxurious experience at a historic property. Even better if you can secure some nights at the lower end of the dynamic pricing range. Its location near Madrid’s major museums and nightlife is unbeatable, the renovation has restored a regal feel to the rooms, and the breakfast benefit is among the best in the Bonvoy portfolio. Although upgrades may be elusive when the hotel is full, the staff’s thoughtful gestures - from handwritten notes to complimentary cocktails - make up for it. For those looking to burn points or enjoy a special stay in Madrid, this Luxury Collection gem delivers excellent value and an unforgettable experience.

Disclosure:

I value honesty and transparency in all of my reviews. As such, all of my hotel stays are paid for either with my own money or with travel rewards points that I have personally earned. The hotels have no influence over what I write, do not review my content before publication, and do not get to approve or censor my opinions. I may, however, receive compensation from the links in this article and appreciate the support as this allows me to continue creating content that is free from external influence. My goal is always to provide a fair, balanced, and independent review that highlights both the strengths and weaknesses of a property, helps readers appreciate the value that can be unlocked through travel rewards points, and makes it easier to decide whether a specific hotel is the right fit for their next aspirational vacation.