HotelChatter

2. Hotel Urban
We're talking modern art-deco luxury in the 5-star Urban, part of the Derby hotel chain. All leather and mahogany and low lighting. We're talking fattening the turkey as well, in the gourmet Europa Déco restaurant and slippery glass oyster bar. Better to sit on the terrace with a warm coat and a cocktail - it's a mecca for trend-setting Madrileños even if they're not staying at the place.

The website claims there are "no set rules" but that's not strictly true - there's a pretty strict limit on how many people can afford to stay here regularly. Splash out for New Year's Eve with a deluxe room, costing 548 ($790) for the two of your for a night. It only happens once a year.

3. Petit Palace Puerta del Sol
We find the Petit Palace Embassy a bit lacking in atmosphere - too much expensive glitz and not enough hair-down fun. Try her smaller sister Petit Palace Puerta del Sol instead - she's cheaper and more up for a night on the town. She's right in the centre of things and loves the attention, even though apart from the showers there's not much to shout about at any other time of the year. Prices for a standard double room for one night start at €120 ($170).

[Photo: Christopher Sly]