Hotel Train, Lisbon to Madrid, First Class.

We did this once. It was not a good experience (and I like night trains), but I'm not sure I would generalize from it; yours could be much better. Still, you might price out airfare just to see.

We took the the overnight train from Lisbon to Madrid and really enjoyed it. Relaxed dinner then go to sleep in Lisbon and wake up in Madrid. Everyone on the train was very kind and helpful.

Thanks, Sharon. I am so glad to hear that you enjoyed the trip!

I've taken the train twice. It seems about the standard overnight train to me. I was in a 4-6 person couchette so it was typical crowded but otherwise no issues. I'd say if you are expecting luxury you'll be disappointed.