"What resembles an embassy or diplomatic enclave from the outside, with a stately façade by Juan de Villanueva (the architect better known for El Prado), is actually a bright and modern space inside. The decor of Hotel NH Collection Madrid Palacio de Tepa may seem avant-garde, with minimalist furniture and statement lights—but one glance through the glass panels in the lobby floor will reveal the ruins of a 16th-century canal system below. No hotel takes sleep more seriously, thanks to two sets of interior room doors which keep unwanted hallway noise at bay. If you can, book one of the handfuls of duplex suites facing San Sebastian church, which have spacious living areas below and lovely bedrooms above."