Market Reports: Madrid, Spain
By Philip Bacon MRICS, FCA on November 3, 2016
Philip Bacon, Director of Planning & Development and Valuation Services, and Carlos García, Analyst, at Horwath HTL in Spain, have written our latest Madrid Market Report.
Extract from our Madrid market report
2016 is on track to be another record-beating year for Madrid hotel market as tourism continues to be a key driver of the recovery of the Spanish economy.
Madrid’s consolidation as a high quality, popular tourist destination for leisure and business continues its upward trend during this year, and is expected to follow the same path throughout 2017. This enables domestic and international demand to consolidate its increase, resulting in substantially improved hotel KPI’s. All signs indicate strong momentum for Madrid’s hotel market, with more growth ahead.
In response to this situation, there has been a significant increase in the number of new hotel projects and transactions in the last year.
Madrid’s current hotel development pipeline is significant not only for the relatively large number of rooms but also for the nature of some of the planned properties, in particular international branded operators such as Mandarin Oriental, Four Seasons and W, which are expected to boost the city’s RevPAR during the following years.