Concierge.com's insider take:
Once the 18th-century summer residence of the Cardenal Lorenzana, Archbishop of Toledo, this converted hostel is built on top of the old city and set within shady gardens. Guests can ride an escalator into town. There are just 27 delightful, though modest, rooms with vaguely Moorish wood furnishings, and they fill up quickly, so book well ahead. The Cardenal also features a celebrated restaurant.