The itinerary: 3 nights Madrid, 1 night Toledo, 1 night Ubeda, 2 nights Granada, 1 night Ronda, 2 nights Sevilla, 2 nights Cordoba, 1 night Caceres, 2 nights Salamanca, 1 night Segovia, 1 night Madrid airport hotel.
The hotels: I would recommend all of them. Madrid-Hotel Regina (very close to the Puerto del Sol, very modern room, huge shower with rainshower shower head). Toledo-the Parador de Toledo (I can't recommend this too highly. We had a room with a balcony with the stunning view of Toledo. Well worth the 27 Euros extra). Ubeda-Santa Maria de Ubeda (this is a small B & B in the old section of town. The room was small but fine and the owner who runs the place was kind and charming). Granada-Hotel Guadulupe (Here we also had a view of the Alhambra and the parking was in the same lot as the Alhambra. So we had a five minute walk to get there. Also the buses to downtown Granada stopped close by. Great location.) Ronda-Hotel San Gabriel (very nice). Sevilla-Hotel El Rey Morro (a pain to find but the staff were very nice and went out of their way to help us park the car). Cordoba-Hotel Hesperia Cordoba (again a fantastic view of Cordoba, it's just across the Roman bridge). Caceres-the NH Palacio de Oquendo (very nice). Salamanca-the NH Puerto de la Catedral (again prime location and very nice). Segovia-Hotel Don Felipe (very friendly helpful staff and we had a terrace with a fantastic view of the Alcazar). Airport-Maydrit (well-run with an on time airport shuttle.