Hostal las Fuentes is on Calle Padre Claret, in Real Sitio de San Ildefonso, in Segovia province, at the foot of the Sierra de Guadarrama. The town grew up around the Royal Palace of La Granja, built for Philip V in the 18th century.
The palace and its French-inspired gardens, with their celebrated monumental fountains, earned the town the nickname Spanish Versailles. The nearby mountains also offer hiking routes and a cooler climate than neighbouring Segovia.