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Train Travel between Lisbon, Portugal and San Sebastian, Spain

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We are traveling from Lisbon to San Sebastian and plan to take the train because of the exorbitant car drop-off charges between countries. We are two adults, one teen and one child. I looked into flying but that was really expensive too.

We can (1) take the Lusitania hotel train to Madrid and rent a car there for our trip north;
(2) take a regular train from Lisbon to Salamanca, arrive at 12:30 a.m. (7 hours on the train), or (3) take the regular train all the way to San Sebastian (12 hours).

Does the non-hotel train have sleeping cars? Is it air-conditioned? We were inclined to travel to Salamanca but the train gets in after midnight and that will disrupt sleep for some of my family. Also, we would need to stay in a hotel but it would only be til the next day, when we would rent a car and head to Segovia on our way north.

Thank you.

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