Business · Companies · 6 hrs ago
Castilla Termal opens sixth hotel in a restored Burgos palace
Castilla Termal has opened its sixth hotel in the Palacio de Avellaneda, a 16th-century palace in Peñaranda de Duero, Burgos province.
The building was commissioned in 1531 and later fell into disrepair before becoming a protected cultural site.
The palace has been converted into a five-star hotel with thermal waters, two restaurants and a swimming pool overlooking the town’s castle.
The company took on the palace in 2022 and spent three years renovating it.
The €22 million project brings a historic building back into use while adding a new hotel to a small rural town.
Castilla Termal focuses on restoring historic buildings in rural areas near mineral waters, with the aim of supporting local economies.
The company may develop another hotel in Valencia, but no further details are given.
Castilla Termal has opened its sixth hotel in the restored Palacio de Avellaneda in Peñaranda de Duero, Burgos.
The five-star hotel occupies a 16th-century Renaissance palace and includes thermal waters, two restaurants and a pool with views of Peñaranda Castle.
The project followed three years of work and an investment of €22 million.
The company’s founder sought to lease the palace in 2022 for 50 years and turn it into a hotel.
Castilla Termal reported revenue of €42 million in 2025, up 11% from the previous year.
- Who
- Castilla Termal, a family-run company founded by Roberto García.
- What
- It opened its sixth hotel in a restored Renaissance palace.
- When
- The hotel opened last August, according to the article published in October 2026.
- Where
- Palacio de Avellaneda, Peñaranda de Duero, Burgos, Spain.
- Why
- The company aims to restore historic buildings and make them rural economic drivers; the palace also met its requirement for nearby mineral-medicinal waters.
This story does not have two clearly opposing sides.
Roberto García requested a 50-year lease of the palace, with the aim of turning it into a five-star hotel with thermal waters.
The palace underwent three years of work, with an investment of €22 million.
Castilla Termal opened the palace as its sixth hotel.
- Hotel
- Castilla Termal’s sixth
- Building
- Palacio de Avellaneda, a 16th-century Renaissance palace
- Location
- Peñaranda de Duero, Burgos
- Investment
- €22 million
- Construction period
- Three years
- 2025 revenue
- €42 million, up 11% from the previous year