Yes, it's in every guide book, and yes it's expensive, but it's the most beautiful hotel I've stayed in. It's a wonderful building organised around four courtyards. It has been immaculately restored and furnished. The staff clearly take pride in this flagship of the Parador chain, and the service is cool but impeccable. Food is good. Beds are comfortable. It is located on one of the finest squares in Europe, and there is even a terrace to watch the sunset.
Praza de Obradoira, Santiago de Compostela.