Isabel Jimenez is a teenager witnessing a horrible feud between her own family and the Fuentes family, a fued involving broken hearts, property disputes and a mysterious fire that destroyed the Fuentes house. Isabel’s uncle is murdered by Jeronimo Fuentes, who later tries to stab her father. After Jeronimo dies in jail, Isabel must look outside of her family for the truth, learning from the village idiot that her father may have set fire to the Fuentes home.

Raimunda (Penélope Cruz) works and lives Madrid with her husband Paco and daughter Paula. Her sister Sole (Lola Dueñas) lives nearby and they both miss their mother Irene (Carmen Maura), who died several years ago in a house fire along with their father. A former neighbor from their hometown reports that she has seen the ghost of Irene and both daughters do not believe her. After a murder and a family tragedy, Irene’s spirit materializes around her daughters to help comfort them.

The plot follows the story of twin brothers, one is a coldhearted violent police officer, the other is a helpless romantic with a mental disability. The two brothers are tragically involved with a prostitute who works in the bordello that gives the film its title. The film was adapted from an eponymous novel written by Juan Marsé.