Spain’s economy is growing five times faster than the eurozone average and Madrid is seizing the moment (writes Liam Aldous). Tourism has been a cornerstone of this boom: the country welcomed 94 million international visitors in 2024 – a 10 per cent rise from the previous year. Visitor numbers in the capital are also up and hotels that have enjoyed well-timed upgrades are poised to welcome a cash-rich clientele. Since 2022 the Rosewood Villa Magna and Mandarin Oriental Ritz have had makeovers, while new openings – such as The Madrid Edition, Four Seasons and Hotel Brach – mean that Madrid can claim to have the best beds in Europe.
Hotel openings often share the freneticism of a major film production. This month, following a €90m refurbishment, it was the turn of Madrid’s iconic Palace Hotel to roll out the red carpet. More impressively, the hotel remained operational throughout its entire 22-month upgrade, a feat that one lobby-touring local likened to “traversing a tightrope inside a high-occupancy chrysalis.”
Warm reception: Madrid’s iconic The Palace Hotel
Image: Alamy
The Palace is no mere inn, though; it’s the hotel in Madrid. The 470-key establishment, which includes 51 suites, has been running since 1912 – a feat of longevity interrupted only by its turn as a military hospital during the Spanish Civil War. Its sparkling new look honours the past but prepares for the future, mirroring a wider trend that is energising the city. Sitting in the heart of both Spanish political power (the lower house of the country’s parliament is right across the road) and cultural clout (neighbours include the Prado and Thyssen-Bornemisza museums), the action and anecdotes have always flowed effortlessly through its doors. The drawing-room styled bar once counted a trio of young, cash-strapped artists named Pablo Picasso, Luis Buñuel and Salvador Dalí among its guests. The latter even left an imprudently whimsical scrawl on one of the bedroom walls, promptly (and sadly) wiped clean by housekeeping.
“Madrileños see The Palace as their own; many have attended weddings or festivities here,” says Miguel Díaz, who oversaw the restoration as chief architect at Ruiz-Larrea Arquitectura. With this revival, the latest and arguably largest gem has been reappointed to Madrid’s hotel crown – and an era of adjustment comes full circle. Now the capital must capitalise on this momentum and, unlike some other Spanish cities, embrace its visitors. The crowds pouring through the doors suggest that The Palace is staying true to its original open-door policy. But curious guests are kindly asked to refrain from recklessly scribbling on the newly polished surfaces – no matter who you are. Bienvenido a Madrid
Liam Aldous is Monocle’s Madrid correspondent. For more opinion, analysis and insight, subscribe to Monocle today.