News
Casa Palazuelo becomes a luxury hotel and changes the rhythm of Calle Mayor
Casa Palazuelo, one of the most recognisable buildings in central Madrid, will become a luxury hotel with 76 rooms. The change of use, approved through a municipal Special Plan, will replace much of its current office space and reinforce the concentration of high-end accommodation between Sol and the Cortes.
The building is at number 4 calle Mayor, with a façade also facing calle del Arenal. Its location, a few metres from Puerta del Sol, places the project in an area under heavy tourist, commercial and pedestrian pressure for almost the whole day.
The future hotel will occupy more than 7,500 square metres. The planned layout provides for thirteen rooms on each of the main floors, while the sixth will house ten suites with terraces. All rooms will have their own bathroom.
The ground floor will retain three commercial premises and add a restaurant. This part of the project will remain active at street level, in an area where traditional shops increasingly coexist with hotels, restaurants and businesses aimed at visitors.
The intervention must respect the protected elements of the building, designed by Antonio Palacios. They include its distinctive V-shaped central courtyard, stained-glass windows, translucent-tile flooring and façades, which will be restored during the works.
The basements will also be reorganised to install kitchens and technical spaces. The main access will include a ramp and an old door will be recovered to create a separate entrance, with the aim of adapting the building to its new use without erasing its original structure.
The planned investment is around €12.7 million, with some €8.1 million allocated directly to the works. The project estimates annual revenue of €14.5 million, an estimate that reflects the growing importance of luxury accommodation in central Madrid.
The transformation opens a new chapter for a building known for decades for its offices, workshops and small businesses. The change leaves calle Mayor increasingly tied to tourism and raises the challenge of preserving the everyday character of a building that is part of the familiar landscape for those who cross the centre.