Macarena Muñoz and Ainhoa Goyeneche
Located right next door to where Nobu Hospitality LLC, the group co-founded by Robert De Niro, is transforming a central Madrid office building into a luxury hotel, the iconic building was bought this week by Mexican investor Jeronimo Bremer’s company and could be transformed into a five-star lodge.
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The projects add to the buzz that a booming tourism industry, a thriving restaurant scene and an influx of wealthy Latin Americans have made the Spanish capital a prime destination for hoteliers.
Madrid, home to Real Madrid’s stadium and the Prado Museum, was ranked as the second most attractive European city for hotel investment after London, surpassing Paris, in the 2024 European Hotel Investor Intentions Study conducted by global commercial real estate services provider CBRE. Last year, around 601 million euros ($645 million) was invested in Madrid hotels, a figure that could be exceeded this year.
“The city’s hospitality industry continues to thrive and shows no signs of slowing down,” said Trevor Horwell, chief executive of Nobu Hospitality, which is planning to open a luxury hotel in 2026.
Madrid has been undergoing a major transformation in recent years, with wealthy Latin Americans flocking to the city to buy luxury homes, investing more than 1.2 billion euros between 2021 and 2023, according to estimates by real estate consultancy Colliers, sending property prices soaring and bringing a swanky lifestyle to the city.
New restaurants and fine dining establishments are opening at an astonishing pace: with 26 Michelin-starred restaurants, including chef David Muñoz’s three-star Diverso, Madrid is the third-most-starred city in Europe.
The city is the third most popular destination for musicals after London and New York, according to local officials, and last year saw new productions such as “The Book of Mormon” and “Aladdin.” Madrid is also trying to attract international events such as Formula One, with the city set to host its first race in 2026.
After a five-year renovation, the Santiago Bernabéu Stadium, home of the soccer team Real Madrid, has been transformed into a venue capable of hosting major international concerts and sporting events. Taylor Swift was the first big name to perform there at the end of May, drawing more than 100,000 people for two consecutive concerts. According to hospitality industry association Hostelria Madrid, Swift’s visit has pumped around 20 million euros into the city’s hospitality industry.
During her stay, Swift stayed at the Villa Magna Hotel, with scores of fans camped outside hoping to catch a glimpse of her. The hotel’s Royal Anglada House has two rooms, a private terrace, a kitchen and dining room, and costs €25,000 a night.
Once ignored by tourists flocking to larger Western European cities, Madrid is now seeing a surge in tourism numbers: More than 10.6 million visitors came to the city last year, with the number of foreign tourists increasing by about 23% from 2022. According to Euromonitor International, Madrid was ranked third among the most attractive cities for tourism, behind Paris and Dubai.
Spain’s coasts have long been world-class tourist destinations, attracting hotel investment, and now that money is flowing into the capital, which sits on the central plain.
Madrid is home to 38 luxury hotels, with about 10 more due to open this year, according to the local government. Despite the French capital preparing for the Summer Olympics this year, a total of 158 new hotels have opened in the past two years, compared with just 39 in the Paris region.
“Madrid is currently attracting both luxury and ultra-luxury hotels and it is interesting to see these investors bringing top-tier investments to the city,” said Jorge Ruiz, head of hotels in Iberia at CBRE. The consulting firm’s report said “the city’s hotel scene is becoming increasingly attractive to global capital, particularly with interest from Latin America.”
Nobu and the new Marriott are part of a string of luxury hotels expected to open in Madrid in the medium term, including the Four Seasons (where a two-bedroom suite will cost around €10,400 a night) in 2020 and the Rosewood Villa Magna and the reopening of the Ritz Hotel in 2021.
The trend is also being driven by greater flexibility for governments to turn landmark buildings into hotels and a proliferation of luxury shops and restaurants, Mr. Ruiz said. Paris is also catching up with other European cities that have traditionally attracted the wealthy: Paris has more than 100 five-star hotels, compared with just 38 in Madrid.
“Madrid still has a long way to go. We don’t foresee limitations or oversupply in terms of hotels in the medium term,” said Laura Hernando, managing director of hotels at consultancy Colliers International Spain.
