Matty and Douglas Horne have owned Hostal Loreto since 2002. Over the years many improvements have been made but the aim has always been to preserve the unique Spanish character of the building. Since opening their popular restaurant La Llauradora de Loreto, which at the time was the first and only restaurant in Calle Loreto, 25 other bars and restaurants have opened their doors in the street! The atmosphere and street terraces make Calle Loreto one of the the most popular restaurant destinations in Denia.

Hostal Loreto was created in 1984 when the 125 year old girl's school run by the Carmelita nuns was moved to a new purpose built building. The hotel originally had 70 bedrooms with a communal bathroom on each floor. In 2002 the current owners refurbished the building to contain 43 bedrooms all of which have private bathrooms with bath or shower. At the same time air conditioning was installed and all of the facilities were upgraded to improve comfort and meet current legislation. Before becoming a school the building was used as a convent. Although the current building dates from the 16th or 17th century the town archaeologist believes that the foundations may date from the 11th century. Because the town archives were burnt during the civil war the exact provenance of the building is difficult to ascertain.

Hostal Loreto is located on Calle Loreto which was pedestrianised in 1999. Previously Calle Loreto was the main road running into the centre of town and the hotel was popular with travelling salesmen. The current owners opened the first restaurant in the street, complete with street terrace, in 2003 and its popularity and unique location did not go unnoticed in the local hostelaria. Today there are more than 25 bars and restaurants in the street making Calle Loreto a lively street terrace area and a true "gastro" destination! As Denia has two Michelin starred restaurants and many of the chefs working here have worked in these establishments the general standard of cooking in the area is very high. One of the Michelin starred restaurants, Quique Dacosta, has three stars - one of only six in the whole of Spain. Another formerly Michelin starred chef, Miguel Ruiz, also has a tapas restaurant in the immediate area. However please bear in mind these restaurants are often fully booked - sometimes months in advance!