Please help with my silly craziness of staying at a wonderful, charming, traditional hotel. Both Ritz & Palace hotels are part of the American Express Fine Hotel program with room upgrade, etc. Has anyone stayed at either hotel recently??

If you want to be close to the so-called "Museum Mile" in Madrid I don't think you can beat the location of the Ritz. Whether or not it would meet your criteria of "wonderful and charming" is another question since those are obviously very subjective terms. The Ritz is obviously pricey by some standards and I am unable to comment as to whether or not you get value for your money (which in my experience isn't necessarily the case) but if you could get a free upgrade it is probably worth strongly considering.

The Ritz and the Palace are directly across from each other. Both hotels are very elegant and traditional.

I believe that the Palace is slightly larger. It has also been renovated more recently than the Ritz. While the Ritz has a good reputation, many of its rooms are a bit shabby and worn around the edges. If you book a Grand Deluxe or Premium room through Amex FH&R, chances are you will get a room with a great view - the last time we did this, the room directly overlooked the fountain in the roundabout in front of the hotel.

The only disadvantage of the Palace is that the side facing the roundabout (and the Ritz) has a Starbucks, VIPs (a modern Spanish restaurant/convenience store chain) and a Planet Hollywood on the ground floor (these each have their own entrance and are not accessible from the hotel). The main entrance to the hotel is on the back side, so you don't have to fight with the crowds on the main street to get in the front door, but I can see how some would not find the presence of the three chain establishments very "charming."

On the other hand, there is nothing quite like taking tea or an afternoon drink in the Rotunda at the Palace - the Ritz is IMHO not as grand or beautiful.

I am a bit amused by the post immediately above...especially the part about the Ritz's "good reputation" but the rooms being somewhat "shabby." The presence of that doorman at the Ritz who tries valiently to intimidate people he doesn't think are staying there by glaring at them as they approach has probably gone a long way toward adding to that "reputation."
I had forgotten about the Palace being right there, too..and as I recall isn't there a (gasp!) MacDonald's nearby, also?

Bootman, just relating my experiences so that Isabelle can make an informed choice - making no judgment as to whether the presence of fast food joints around a nice hotel are a good/bad thing. I rather prefer the Palace, myself.

FWIW, it is my experience that many older but famous hotels charge high rates for inferior facilities because they can capitalize on their reputation. Hence the description of the Madrid Ritz as being a bit "shabby". I have seen two or three rooms there that were desparately in need of repair. I have seen the same at the Ritz and Crillon in Paris.

BTW - have never seen a "glaring" doorman at the Ritz in Madrid, despite walking by quite frequently. I think the whole idea of the doorman as guard is a bit of a joke perpetuated by intimated tourists. I find it amusing that people often speak of how the Ritz doormen in Paris stop non-guests from entering. I have walked into the Ritz several times - even in very shabby clothing - as a non-guest and never even been glanced at twice.

Thanks to all who have contributed significantly to my thought process.Thank you Bootman4u for your interesting insights. The analogy JJA34 made with the Ritz and the Crillion is telling as I stayed at the Crllion and was fortunate to have a beautiful suite, but noticed many mediocre rooms as a passed thru the hall. Definitely, the presence of fast food restaurants is not the ambience I was looking for. I think I'll hope for an upgrade at the Ritz and make reservations for tea at the Palace. Muchimas gracias!

Oops! Just read my posting and I'm sorry for so many spelling errors, even my Spanish was wrong! Muchisimas gracias!