Palacio Ico
Teguise, Spain
★ Verified by our editors · September 2026
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The verdict
A 1690 house in the old capital, restored to nine rooms around a cactus courtyard, with a kitchen the Michelin Guide has listed since 2023. César Manrique put this building in his own book on the island's architecture; sleeping in it is the closest thing Lanzarote has to a town-house stay.
Travellers who want architecture and a serious dinner without hiring the island, and who like being able to walk out of the door.
You need a pool, a beach or a view — this is a walled house in a market town, and it is not on the coast.
The suites are the ones with the five-metre tea-wood panelling and the coffered ceilings; the standard rooms are lovely but the height is what you are actually buying here.
The rooms
Nine keys — five rooms and four suites — between 25 and 65 m², each one shaped by whatever the 17th-century house gave it: original tea-wood panelling, coffered ceilings, 18th-century floors. One suite was the building's art gallery and still shows contemporary work. No two are alike, so choose the room rather than the category.
The setting
Teguise was the island's capital until 1852 and is still its most complete historic town, ten minutes inland from the coast and a short drive from the Manrique foundation at Tahíche. César Manrique included this house in Lanzarote, Arquitectura Inédita in 1973 as a reference for the island's traditional building. Sunday is market day and the town is busy; the rest of the week it is very quiet.
The food
The restaurant is the reason a lot of people book: contemporary Canarian cooking on island produce, in the Michelin Guide since 2023 and holding a Repsol Sol. Brunch is served in the courtyard. For a nine-room hotel the kitchen is disproportionately ambitious, and dinner should be booked with the room.
Getting there
Twenty minutes from Arrecife airport, ten from Costa Teguise, and central enough that Famara, Haría and the north are all half-hour drives. Teguise's old centre is pedestrianised in parts, so confirm parking when you book.
Good to know
There is a small Balinese-style spa but no pool, and the house is inland — this is a base for the island, not a place to spend three days on a lounger. Adults and children are both accommodated, but the building has stairs and hard surfaces throughout.
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Palacio Ico
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