Until the end of the 19th century, the center of Madrid was (and still partially is) a mess of small, narrow streets whereas the new residential and commercial areas of Salamanca and Argüelles were in vogue. So, an avenue to connect them and revitalize the center was neccesary.

To create this avenue it was neccesary to demolish 310 buildings of these narrow streets where, curiously enough, the street of Caballero de Gracia was one of the main commercial with several restaurants and stores, but it was eclipsed by the creation of the main avenue known today as Gran Via. Even though, in our street you can still find several restaurants of national and international cuisine, bars and shops, and being just a few steps from Gran Via, our hostel is one of the most centric of the city.

Continuing with the history of Gran Via, a 35-meter wide avenue was created, although all the new buildings were very high for its times and though its wideness, sometimes it's difficult in winter to see the sun in this street. Among these buildings we find the one that was the highest of Spain in the early 20's, the Telefonica building just in front of our hostel, or the Capitol one, famous for its Schweppes advertisement. One century later, Gran Via still is the main avenue of Madrid.