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Casa Palazuelo to be transformed into a luxury hotel, changing the rhythm of Calle Mayor
Casa Palazuelo, one of the most recognisable buildings in the centre of Madrid, will be converted into a luxury hotel with 76 rooms. The change of use, approved through a municipal Plan Especial, will replace much of its current office space and further concentrate high-end accommodation between Sol and the Cortes.
The building is located at number 4 Calle Mayor, with a façade also facing Calle del Arenal. Its location, just a few metres from Puerta del Sol, places the project in an area with heavy tourist, commercial, and pedestrian traffic almost all day long.
The future hotel will occupy more than 7,500 square metres. The planned layout includes thirteen rooms on each of the main floors, while the sixth floor will house ten suites with terraces. All rooms will have their own bathroom.
The ground floor will retain three commercial units and add a restaurant. This part of the project will maintain activity open to the street, in an area where traditional shops increasingly coexist with hotels, restaurants, and businesses aimed at visitors.
The renovation must respect the protected elements of the building, designed by Antonio Palacios. These include its distinctive V-shaped central courtyard, stained glass windows, translucent paving, and the façades, which will be restored during the works.
The basements will also be reorganised to install kitchens and technical spaces. The main entrance will incorporate a ramp, and an old door will be restored to create a separate entrance, aiming to adapt the building to its new use without erasing its original structure.
The planned investment is around 12.7 million euros, with about 8.1 million directly allocated to the works. The project estimates annual revenue of 14.5 million, a figure that reflects the growing importance of luxury accommodation in the centre of Madrid.
The transformation marks 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 crossing the centre.