Hotel Abalu

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Newly expanded and upgraded, a stylish hotel with designer touches like in-room cinema, a few blocks from Gran Via

This retiro urbano is a masterclass in the art of packing a lot into a little. Between the traditional housefronts of Calle Pez you enter a shiny reception-cum-beauty-bar and land on another planet: black-tiled floors, white-leather sofas, giant test tubes sprouting single roses - all futuristically lit by orange-neon squares and ceiling spots. From behind his laptop, dapper Antonio welcomes you in perfect English. He and partner Luis are responsible for the sleek décor; they run the place with masterful ease, helped by their friends and his mother (it used to be the family hostal).

Most bedrooms overlook a tiny patio interior, totally muted from the sounds of Madrid. Some are pure white, others blood-red or concrete-grey, but all boast designer furnishings (Mies van der Rohe chairs, a glass-cube lamp from P17), clever lighting and excellent use of space. New junior suites even get jacuzzis and in-room cinema. Breakfast is a buffet or at a nearby churreria; tapas bars are on hand; and it's 5 mins' walk to Gran Via, or 10 to the Royal Palace.