Spain's state-run luxury hotel chain Paradores de Turismo has been hit by the recession, with the Government announcing cuts in its services to ensure its survival.
Paradores has 94 luxury hotels in its portfolio, including monasteries and and palaces such as a restored 15th century convent within the walls of the Alhambra Palace in Granada.
The chain, which has been running since 1928, suffered a lost of £81m in 2012 alone, according to the Daily Telegraph.
Now it is laying off 350 staff and closing some properties at less profitable times of the year.
The Parador in Puerto Lumbreras in Murcia region of southern Spain will be closed permanently. Another 30 will be closed for between two and four months each year outside the busy seasons. In addition, at least 15 of the chain's restaurants will be closed.