Hotel Espanya is one of Barcelona's oldest hotel establishments, its earliest documentary reference dating back to 1858.

In January 1898, Miquel Salvadó, the hotel's owner at the time, commissioned architect Lluís Domènech i Montaner to decorate the building, a project he completed in 1903. In refurbishing the hotel, Domènech i Montaner collaborated with two contemporary grand masters of the plastic arts: sculptor Eusebi Arnau and painter Ramon Casas. Eusebi Arnau created the splendid fireplace in the former guest dining room, while Ramon Casas was responsible for the marine sgraffiti in the interior dining room, known as the Mermaids Room. The first thing that catches the eye in this dining room is the mural depicting marine motifs: mermaids (although with legs), Mediterranean fish and similar, all against a background of waves in relief. In 1904, the decoration won the Architecture and Decoration Prize in the category of commercial establishments awarded each year by Barcelona City Council. Hotel Espanya is a jewel of Barcelona Modernisme.

In 2010, the Cadarso Group, the hotel's owner, commissioned architects Carlos Bassó and Tote Moreno, along with interior designer Mercè Borrell, to thoroughly refurbish the building. As well as modernising the hotel, they absolutely respected its Modernista spaces and elements. The renovation resulted in a new 83-room Hotel Espanya and the Fonda Espanya Restaurant, run by the famous Basque chef Martín Berasategui, offering traditional cuisine at a moderate price.