One Spanish Parador hotel is being shut and 350 staff are being laid off.
The closure of the Puerto Lumbreras property in southern Spain by the government follows an agreement with unions.
The government announced plans in November to close seven hotels and cut 644 staff, but has reduced that after strikes and union negotiations.
Although only one hotel will close completely, about 30 others will shut for between two and four months each year, down from the originally planned five month closures.
About 15 of the chain’s restaurants will also be closed.
The state-run chain of 94 hotels in converted castles, mansions and monasteries dates back to 1926.
The Paradores de Turismo lost €77 million in 2011. Occupancy rates fell from 70% in 2007 to 52% last year.
The company said it expected its losses to have widened to €107 million in 2012, despite cost-cutting measures, the BBC reported.
Parador staff have held a series of strikes in recent weeks, including on December 31 and 1 January 1.