What are Paradors?
Paradors or Paradores are a chain of state-run Spanish luxury hotels created in the 1920s to promote tourism and preserve ancient buildings. They are usually castles, convents, forts and other historical buildings or more modern buildings in areas of special natural or historic beauty.
Although luxurious, many can be found at similar prices we Brits pay for identikit corporate hotel chains so they are well worth checking out as you may well be pleasantly surprised.
Our family has stayed at Parador Salamanca several times and we can highly recommend visiting this stunning town.
http://www.parador.es/en/paradores/parador-de-salamanca
The Portuguese equivalent of paradors are called Pousadas. See: Pousadas des Portugal.
We have stayed at Pousada Castelo Estremoz and cannot recommend it highly enough. The kids adored staying in this ancient castle. It was cheaper than the Holiday Inn we stayed in near Portsmouth on our journey down.