P

icture a stately 19th-century palace that’s been transformed into a boutique hotel, one that has everything going for it: a mix of old-world glamour and modern interiors by a prominent designer in an enviable address in the heart of Madrid’s hip Chueca neighborhood. Digest all of that before we tell you the next part. It’s called Only YOU Boutique Hotel.

Once you get past the inevitable confusion with your taxi driver (“Only YOU.” “Que?”) you’ll be very glad indeed when you pull up to the building’s decorative entryway. Only YOU is cool and elegant, exhibiting just the right mix of old and new. The palace was once the home of Elvira, Marquesa of Alhama, and the grand colonial architecture reminds you of that — think high archways and wooden beams, traditional azulejo tiles, marble fixtures, moulded ceilings. But the interiors also bear the stamp of Lázaro Rosa-Violán, a respected Barcelona-based designer. Color-wise, he’s taken inspiration from the blue and white tile that’s traditional of the region. But he’s dropped the antiques in favor of modular sofas and Jonathan Adler vases, Chesterfield armchairs and futuristic lighting.

Guest rooms and suites, soundproofed from street noise, are outfitted with goose feather and silk duvets, rain showers, LCD Smart TVs, iPhone docks. Note the attention to detail: a professional-quality hair dryer here, a charming jewelry box over there.

The same is true downstairs, particularly in Padrino Cocktail Bar, housed in a former bookstore named “Padrino” and still sporting its original façade. The hotel is also within walking distance of countless bars, boutiques, and restaurants, not to mention the Prado and most of the city’s tourist attractions. Experiencing Madrid on foot, you can work off all the cava and churros, and as an added perk, you won’t have to keep going through the “Only YOU” routine with taxi drivers.