A welcoming hotel in a beautiful building on a pedestrian street in the centre of Olivenza (park your car in the Plaza de España, a few minutes walk away). The hotel has a bar, breakfast area, and restaurant, very comfortable rooms, and the staff are attentive and friendly. There is no minibar, but drinks are brought to your room on request (bottled water is free). We paid 90 euros for b&b in January, which while not cheap seemed reasonably good value for the quality of room and service we obtained – the breakfast was especially good. There are lots of bars and restaurants: we recommend the Taberna La Rala in the road behind the hotel (this place has exceptional tapas and range of local wines), the Restaurant Dosca a few minutes away in Plaza de la Constitucion (we were happy with our meal there, with friendly service and again excellent local red wine), and maybe the Palacio Arteaga restaurant itself (next time we will try this). Olivenza itself, so recently Portuguese rather than Spanish, has a distinctly different feel from other towns in Extramadura. There are several interesting places to visit (the Palacio will provide details and a map), but most of all don´t miss the stupendous Manueline architecture inside the church of La Magdalena. Outside the town you can drive 12km to the ruined Ajuda Bridge, and try walking along the Rio Guardiana north of Villarreal. Olivenza makes an excellent alternative to staying in Badajoz.