Alavera de los Baños
Fittingly, given its location next to the Moorish baths, this small, German-run hotel---which was used as a backdrop for the film classic Carmen---has an Arab theme throughout. Terra-cotta tiles, graceful arches, and pastel-color washes on the walls set the scene, and the two rooms on the first floor, which have their own terraces and open onto the split-level garden and pool, are well worth the extra €20. Breakfast comes with homemade jams and breads, plus local cheeses.