[1] In 1486, after a pilgrimage to Santiago de Compostela, Queen Isabella I of Castile and King Ferdinand II of Aragon, the Catholic Monarchs of Spain, decided to build a hostelry and hospital for pilgrims at the very end of the Way of St James.

Nowadays, with its 137 rooms it is the finest and largest by capacity parador of the network, and continuing its hospitable tradition, it provides free services to a limited number of pilgrims every day.

[2] As a sign of their religious piety, and their growing economic and political might, they began a program to improve the infrastructure and support services on the pilgrimage trail.

[4] Nowadays, the concepts are clearly differentiated, but at the time the Hostal started operation the idea of its functions included sleep, food, as well as care for wounded feet and other ailments deriving from long-distance walking.

[10] One of the oldest medical schools in Spain sprang up nearby, and it helped establish the tradition of the city as center for university learning and higher education.

It was his decision to renovate the Hostal into a world class modern hotel with the occasion of the 1954 Jacobean Jubilee, moving the hospital facilities to a new location nearby.

[14] As of 2022[update] the hotel continues to provide free breakfast, lunch and dinner every day to the first ten pilgrims who prove they have completed the Way of St James.