Market Report: Madrid, Spain
By Philip Bacon MRICS, FCA on March 16 2018
2017 has ended as a year of consolidation for Madrid, improving on the results of 2016, which was itself an outstanding year in terms of tourism performance.
Even though domestic demand in Madrid has shown signs of stagnation over the last year, international demand remains very strong, and has confirmed the milestone achieved in 2016, when foreign tourist arrivals clearly outnumbered domestic tourist arrivals to the capital.
These factors, together with a slower-than-demand supply increase in 2017, has resulted again in improved KPIs for the main hotel categories. More investors have been attracted this year by Madrid’s hotel market, boosting hotel transaction volume and the number of hotel projects in the pipeline.
The question now is: can this growth be sustained in the coming years?