Madrid, Spain: Tourism & Hotel Market Analysis – October 2019

2018 was a record-breaking year for tourism in Spain, with over 82 million tourists visiting the country. Madrid alone welcomed 10.2 million tourists, an 8% increase from 2017. This growth trend continued into 2019, with international arrivals rising by 18.1% and national arrivals increasing by 2.6% from January to July. Key source markets included the USA, China, France, and Mexico. 

Tourism and Market Performance 

• Overnight Stays: Grew by 11% year-on-year in 2018, with international overnight stays (61%) outpacing national stays (39%). The higher average length of stay (ALS) by foreign tourists contributed to this trend. 

• Key Performance Indicators (KPI): 

• Occupancy Rate: Increased consistently from 67% in 2014 to 76% in 2018. 

• ADR (Average Daily Rate): Rose from €75 in 2014 to €90 in 2018. 

• RevPAR (Revenue Per Available Room): Grew from €50 in 2014 to €70 in 2018. 

Recent Openings and Future Supply 

From 2018 to mid-2019, Madrid saw the opening of 30 hotels, adding 1,088 rooms. The majority of these were refurbishments (24), with the remainder being new-builds or conversions (6). The luxury and upper-upscale segments experienced the most significant growth, driven by the increasing number of international tourists with high purchasing power. 

• Notable Openings (2018-2019): 

• RIU Plaza España: 585 rooms, upscale. 

• Pestana CR7 Madrid: 168 rooms, upper-upscale. 

• BLESS Hotel Madrid: 111 rooms, luxury. 

• Pipeline (2019-2022): 

• INDIGO Madrid Princesa: 100 rooms, upper-upscale. 

• Four Seasons Canalejas: 200 rooms, luxury. 

• EDITION Hotel Madrid: 200 rooms, luxury. 

Market Trends 

Madrid’s hotel market is seeing a shift towards more upscale properties, reflecting both the increased purchasing power of Spanish nationals and the demand for high-end experiences from international visitors. 

• New Concepts: 

• Rooftop Terraces: Increasingly popular, with hotels like RIU Plaza España and NH Casa Suecia offering impressive rooftop experiences. 

• Unique Selling Points: Hotels are focusing on creating unique guest experiences, such as the bowling alley at BLESS Madrid and the wine room at Pestana Plaza Mayor. 

Key Projects 

• Madrid Nuevo Norte: A major expansion project set to develop the northern district of Madrid, including residential areas, parks, and a new Central Business District. Construction is expected to start in 2021, with an estimated 240,000 jobs created. 

• Madrid-Barajas International Airport: AENA plans to invest €2 billion to expand the airport’s capacity from 70 million to 80 million passengers. 

• Aeropuerto Madrid Sur: A new airport project aimed at capturing low-cost carrier traffic, expected to start construction in 2020 and operational by 2023. 

For a comprehensive analysis and detailed insights, download the full report from Horwath HTL.