Barcelona, with its famed Gaudí architecture and other modernist landmarks, historically has outdrawn Madrid in foreign visitors. But with Catalonia’s campaign to secede from Spain and Barcelona’s ban on new hotel development, attention is moving toward the nation’s capital.
“Barcelona is a stronger and more international market but Madrid has more upside potential,” said Raúl González, CEO for Europe, the Middle East and Africa at Barceló Hotel Group, which has opened two 5-star hotels in Madrid in the past two years.
Tourism is rising, with 9 million visits last year, up from a recent low of 7.2 million in 2009 at the depth of the recession, according to London consultancy Christie & Co. Overnight stays in Madrid hit 18 million from 13.6 million in the same period.
City hotels enjoyed 7.2% RevPAR growth last year, driven by improving occupancy and room rates, according to a PwC forecast for 2017 and 2018 published earlier this year.
Occupancy in Madrid is expected to climb 3.1% this year to 73% and another 3.6% in 2018. Average daily rate is expected to climb 2.8% to €100 (US$118) this year and jump by another 4.6% to €105 (US$124) in 2018, PwC forecasted.
Madrid has benefited from a spike in 5-star hotel rooms, up 12% last year, PwC said. More are in the works, several involving renovations of historic buildings. Four Seasons’ first property in Spain is an update of the Canalejas Building into a complex including 215 rooms, residences and shopping, slated for early 2019.
Marriott International next year is set to open its second W Hotel in Spain and first in Madrid, in a 19th-century building that was once a hotel. It will have 141 keys and a roof terrace with a bar and pool.
A rooftop pool will also top the Edificio España in the city’s Plaza de España, a historic property being renovated by RIU Hotels & Resorts, which plans to spend €400 million (US$471 million) to develop a 4-star hotel with 650 rooms and shopping on the lower floors. Set to open in 2019, Edificio España will be RIU’s first urban hotel in Spain.
By HOTELS Contributing Editor Judith Crown