While the 103 guest rooms and suites are now light-splashed and modern, the familiar Spanish-style architecture remains it now matches the new 12, 000-square-foot building which houses a bell tower, fitness studio, Spa by La Prairie and three airy guest rooms with open floor plans and retractable interior walls.

FORBES: Three New Top Hotel Re-openings To Check Out In 2012

According to public records, Mr. Hirshberg's 11, 374-square-foot home has two elevators and a pool, and Mr. Wallette's Spanish-style home, which was built in 2009, has marble countertops and an outdoor kitchen and bar.

WSJ: From Oil, a Land Rush��WSJ Mansion

But then in the 17th Century, supposed heretics were tried and executed here during the Spanish Inquisition -- burnings at the stake and deaths by garrotte took place on the north side of the square, hangings to the south.

BBC: Madrid��s public squares