Madrid: Where Premium Hospitality Turns Into Real Value

At RS Bersy, we believe every economic cycle opens unique windows for those who know how to look beyond the noise. Today we want to share why Madrid’s hotel sector — especially in the 4- and 5-star segment — is fast becoming a top target for sophisticated family offices and institutional investors in 2025 and beyond.

A historic moment for Madrid tourism.

Record numbers and a solid foundation

Madrid closed 2024 with 10.4 million visitors and more than 21 million overnight stays, beating pre-pandemic levels and securing its place as one of Europe’s most dynamic urban destinations.

Sustained growth in 2025

In early 2025, demand remains strong (+2.6% vs. the same period last year), showing a market that is not cooling but maturing, with increasingly international and high-spending guests.

True global gateway

Madrid-Barajas Airport handled 66.2 million passengers in 2024 (+9.9% YoY), placing it firmly among Europe’s top five hubs. Its ambitious Airport City Madrid project will add new hotels, offices and premium services over 32 hectares, boosting connectivity and opening new opportunities for funds and operators.

Este desarrollo estratégico no solo fortalecerá la conectividad de Madrid, sino que aportará nuevas oportunidades para operadores y fondos interesados en activos hoteleros vinculados a negocios y tránsito internacional.

Hotel market with room to grow

Madrid today offers nearly 94,000 hotel beds across 942 hotels. But it’s not just the size — it’s the quality: over 62% of the capacity is in 4-star hotels and nearly 15% in the luxury and grand luxury segment. On top of that, there are 45 new hotel projects underway, adding over 4,800 rooms.

Madrid has nearly three times the new hotel pipeline of Barcelona, confirming investor confidence and strong absorption by a market that keeps expanding. más del 62% de esta oferta pertenece al segmento 4 estrellas y casi un 15% al 5 estrellas y gran lujo, una combinación que apunta a un posicionamiento cada vez más premium. Además, hay 45 proyectos hoteleros en construcción, con un pipeline de más de 4.800 nuevas habitaciones. Madrid concentra casi el triple de nuevas habitaciones en desarrollo que Barcelona, lo que confirma la robustez de la demanda y la confianza inversora.

Luxury closing the gap with Europe’s top benchmarks

Key RevPAR and ADR figures for 2024 and 2025

Madrid’s 5-star hotels have now matched Barcelona in RevPAR (Revenue Per Available Room) — something unthinkable just a few years ago. The Average Daily Rate (ADR) hit €155.6 in 2024 (+15.9%), while RevPAR rose 17.7% to reach €116.1. In early 2025, ADR climbed another 14.5% YoY, and the 5-star segment posted over 25% growth in RevPAR.

Behind these numbers lies robust international demand: 63% of overnight stays now come from foreign visitors, led by the U.S. and a strong rebound from China (+74% in 2024).

Profile of the international luxury tourist

Luxury attracts international tourists with greater purchasing power, who also extend their average stay. The data confirms this: 63% of overnight stays in Madrid already come from foreign travelers, led by visitors from the US, followed by a booming Chinese market (+74% in 2024).

Events, culture and sports drive demand

Major events that boost hotel occupancy

Madrid’s position as a global events capital keeps getting stronger. The city was voted World’s Best MICE Destination for the sixth year runninit.

Effect of dynamic rates on profitability

The NFL Game in 2025 and the Formula 1 Grand Prix in 2026 at the new semi-urban MADRing circuit

Major events like these boost occupancy and room rates by 20% to 75%, creating extraordinary returns for owners and operators alike.

Leading Spain’s urban hotel investment

Madrid has been Spain’s #1 urban hotel investment market for three years straight, with 17 transactions totaling €594 million in 2024 alone. Landmark deals like the Hotel Miguel Ángel (€200M) highlight strong appetite from family offices, PE funds and global chains looking for prime repositioning opportunities.

Madrid: an open, flexible market with potential

While other cities face regulatory constraints that restrict new openings, Madrid offers legal certainty, land availability, and stable regulations—key elements for attracting institutional capital and international investors.

The data shows a city that absorbs new supply without becoming saturated, that continually improves its luxury product, and that attracts global brands such as Nobu, Radisson Collection, and Palace Luxury Collection. It's the perfect combination: growing supply + international demand + cutting-edge infrastructure.

RS Bersy: betting on high-end hospitality

At RS Bersy, we work every day to identify, analyze, and leverage off-market opportunities for strategic investors seeking quality assets in the 4- and 5-star segment. Today, we manage confidential mandates for the purchase, repositioning, or development of premium hotels in key locations in the capital.

We firmly believe that Madrid is today one of the most attractive urban destinations for high-end hospitality investment in Europe, with risk-adjusted returns and real capital gains potential in the medium term.

📩 If you're a family office, institutional fund, or wealth manager with clients looking to diversify into prime hotel assets, at RS Bersy we'd be happy to show you the unique opportunities we're currently developing. RS Bersy estaremos encantados de mostrarte qué oportunidades únicas estamos desarrollando actualmente.

Contáctanos. Hablemos de Madrid.