The Spanish were geniuses, back in 1928, to start creating a very large network ("red" in Espanol) of first-class hotels out of very old, sometimes decrepit, generally useless palaces, monasteries, and the like. They vary somewhat in quality but, in my experience, are never less than good. And nowadays prices actually seem lower than five-ten years ago. Some are less than $100/night. (Meals still tend to be quite pricey.)
This parador, at Olite,in the lovely Rioja wine country, is more than that, but worth the price, esp. if you like staying right in the city or, in this case, town. The location is ideal: practically next door to Olite's big attraction, a castle, and 3-4 minutes from an array of small streets, cafes, shops, and the like. Esp. liked the parador's staff, which not only cheerfully sent a fax for me but then followed up on when it did
not 'go.'