The Asta Regia (named for the nearby Roman town) is a relatively new hotel just off the Plaza Arenal, the main square in the centre of the old city. It's also near the Alcázar Palace and just a five-minute walk to the central Market, with plenty of good bars and restaurants nearby.
The building was once a palace, but has been completely renovated to provide all the modern services which you'd expect from a four-star hotel, including swimming pool, sauna and gym, while maintaining some traditional touches – lots of those horseshoe arches, for example. The rooms (31 of them) are spacious, and include twins, standard doubles, superior doubles and junior suites, all with TV and free Wi-Fi. Aside from an attractive dining area (open for breakfast only) there is also a lounge/bar in front of reception. If you want a room with a street view, opt for a superior. The standard double rooms are all interior and open onto the patio.
Room decór is clean and modern, and is consistent throughout the hotel. Our double superior room, which faced onto the street, had two larger than average (and very comfortable) 105cm twin beds, a desk, plenty of closet space and a mini bar. The bathroom was attractive and well-equipped, with a shower/bath, two sinks, toiletries, and a hair dryer. My only small niggle was the insufficient number of electrical sockets to plug in our devices. But it was a very pleasant stay, with helpful and friendly staff. I highly recommend the Asta Regia for comfort and location.