The Hostal Descalzos is suggested in Sawday's Special Places to Stay in Spain, right near Pintor El Greco, e-mail h-descalzos@jet.es. I've never stayed there, but it looks great. We did stay at La Almazara, and loved it. It's a 16th century summer palace just outside the walls, with a fabulous view of the city--get a room with a balcony and view. Since you'll have a car, it's easy to drive and park just outside the walls, or take a 20 minute stroll. Parking is free at the hotel, room rates are cheap, breakfast is good. e-mail hotelalmazara@ribernet.es