Hostal La Fontana

Despite the puti club (strip joint) across the street, we like this 17-room hostal. La Fontana is located on Calle Valverde, an off-shoot of Gran Via, which is packed with seedy character. We are fascinated with Calle Valverde, as are the Spanish stars and starlets who reside nearby.

With its friendly service and design savvy, La Fontana undercuts its two-star bracket contemporaries. The only thing it seriously lacks is air conditioning, with ceiling fans making do during summer months.

Double rooms are small, with twin beds and built-in shelving systems. Sheer scarlet curtains are joined by Ikea-like reading lamps and squarely hung detail mirrors in setting the tone. Sliding doors lead to a small bathroom, where freshly cut orchids welcome guests on arrival. The best room, in our opinion, is (perhaps ironically) the only interior double with neither a balcony nor a toilet. First and foremost, we're suckers for good design.