As the Spanish economy is relied upon to proceed with its recovery and Madrid increases its popularity as a noteworthy business center, expectations for the hotel market stay good.
Madrid is the capital and business center of Spain. It remains a business destination yet it is additionally an important leisure destination because of its numerous cultural attractions and is a standout amongst the most visited destinations in Europe. Additionally, it is the third city regarding world congress tourism, hosting essential meetings and worldwide conventions like FITUR (International Tourism Fair).
2016 demonstrated a huge development in RevPAR (7.2%) driven partly by rising occupancy rates, which are now at around 70.5% (+2.1% from 2015) yet mainly by the 5.0% increase in average ADR to €97.7, the best rate since 2008. Following the decline in ADRs caused by the financial crisis, ADR levels have been expanding since 2009, particularly in the four/five-star hotel segment.
Madrid City saw a slight decrease in the number of hotel rooms that opened in 2016. Nonetheless, the number of five-star hotel rooms grew by 12%. The luxury hotel trend is experiencing a huge development of 29.6%. Hotel real estate interest in Spain was in the five-star hotel class in 2017. New luxury hotel projects are additionally in the pipeline. Four Seasons has chosen to open its first Spanish lodging in the Canalejas Building, one of the most remarkable historical buildings of the downtown area. The opening has been postponed to Q1 2019.
Additionally, in 2019, another new luxury hotel of 600 rooms is set to open after the sale of the iconic Edificio España in December. This lodging will be operated by RIU and will be the group’s first urban hotel in Spain. The historical Celenque was purchased by KKH Capital Group and Perella Weinberg RE to change it into a luxury hotel. The Spanish record for the highest cost per room paid in an advantage exchange was softened up with the offer of Villa Magna, one of the most luxurious five-star lodgings in Madrid. Madrid has been profiting from the effect of the hotel ban in Barcelona and furthermore the political uncertainty caused by the freedom development in Catalonia. Madrid area caught around 31% of the total volume of investment in hotels in Spain in 2017.
In January 2017, Madrid facilitated the International Tourism Fair’s (FITUR) 37th version, with an expansion of 6% in the number of guests, a record 245,000. Fitur celebrates its 38th staging from January 17 to 21, 2018. As a global meeting point for tourism professionals and Fitur is the leading trade fair for inbound and outbound Ibero American markets. As HotelsPro, we take our place at booth no: 8D02A in this unmissable 5-day event for all professionals in the industry. Let’s get together at Fitur 2018 to take the opportunity to discuss how we can produce solutions and add significant values to your company.