The Hotel FAQ, page 2:
Where to stay is a matter of taste and budget.

When I travel by myself I prefer to stay at family- owned hostales as they are cheaper than hotels. When taking a family vacation, my wife prefers we stay in hotels. Hostales often lack the safety amenities many of us have come to expect in hotels (read the tips section). Important Note: In the summer air-conditioning becomes very important and most hostales and cheap hotels lack air-conditioning. If you are looking for atmosphere in your hotel, consider a parador. Also, if you haven't made pre-reservations, do take time to check out some of the small town hostales. Some are very nice and have their own atmosphere.

Hotel availability/must I have a reservation?:

Even in the off-season I make reservations for the first and last hotels of my visit. On one occasion my plane was 9 hours late arriving into Madrid. Looking for a vacant room at 8:00 at night, after a long transatlantic flight, is something you will want to avoid. Having a hotel room reserved for my last night in Spain means one less hassle as I prepare for my travel home.

Through high season (late June, all of July, August and September) I recommend getting hotel reservations in advance. With the exception of Barcelona and during the month of August, it is possible to find a vacant hotel room in most areas of Spain without advance reservations. Barcelona is known to have a limited number of hotel rooms available, and hotel reservations are required all year round. In August most of Europe goes on vacation. If you haven't made reservations well in advance, finding a room may be difficult. If you don't pre-book a room, you may have to accept lodging in an establishment you normally would not find acceptable.

During March in Malaga I had difficulty finding a vacancy. I ended up making reservations at a nice hotel for the following day and spent my first night in Malaga at a $12.00 (1999 exchange rate)a night pension. What type of room do you get for $12.00 a night? Well, a room with a lumpy mattress and plaster chunks missing from the wall. Still, the pension was right next door to the nicer hotel, and the clerk did watch the front door closely.

It is also important to remember that there are a number of local as well as national fiestas that fill hotel rooms quickly in those cities holding festivities. A list of national holidays can usually be found in a Spain guidebook but I have been caught off guard by local fiestas. If you don't have reservations, try to check out potential rooming establishments early in the day. Even in off-season I have had to check out as many as four establishments before finding a hotel with a vacancy.

For a little different perspective on Spain accommodations click here or go to Page 3 When is the best time to go to Spain?