I have stayed at Reyes de Católicos on a few occassions and I was always impressed. Also, some people say the Hostal is the oldest continually operated hotel in the world.

I don't know about oldest, as the hospital was converted to a Parador in the 1950's (it only took them nine months, and you can see the carved busts of the men in charge in an archway over one of the staircases). Depending on what it was before that, you may be right. I would check the source on that, though, as I believe it was a pilgrim's hospice/hospital, not a hotel prior to the parador conversion. Anyone have any historical data???

Calibasco, how I envy you. next to Madrid I love Santiago the most of all places in Spain that I have visited. What I enjoyed about visiting the Parador was the ambiance and the fact that the staff were exceedingly nice. I dined there Christmas day, 2001, and while expensive it was worth every penny, though not for the food, which in my estimation was pedestrian, but for its ambiance. You felt like you were transported to medieval times, particularly as you looked up to the vaulted ceilings. The downstairs cafe was also very splendid, but not as impressive as their main dinning room.

I am not sure though that for a humble educator it is worth spending so much money,but next time I visit I will certainly spend at least one night just to experience it!

I have stayed at Hostal de los Reyes Catolicos and I would compare the ameneties with a Hyatt Regency or a Marriott (i.e., I didn't find it all that special). The Buffet breakfast is nice, but it's also quite expensive and it's no better than what one encounters in Business Class hotels in the U.S. And the way the place is laid out, one needs a map to find the way back to one's room.
I have also stayed several times at Hostal Hogar San Francisco (about 200m behind the Parador, past the Facultad de Medicina). It's a 'working' Franciscan 'Convent' (Friars, not Nuns). 'Standard' rooms at HHSF are spartan. But they have one room, the Cotolay room, named for the Carbonero who helped Francis of Assisi build the Convent, that's a real value. It's huge! I would estimate it at 625 square feet. It has one Queen-size bed and a sofa that converts into a single bed. The Cotolay costs a bit less than a standard double room at the Parador but I think it is a much better dollar value (if it's available, that is)