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Case Study

Iconic Ritz Hotel Madrid sold for €130 million

Ritz Madrid
The 167-room, five-star hotel was first opened in 1910 according to the wishes of King Alfonso XIII. It is located next to the Museo del Prado in the heart of Madrid’s ‘Golden Triangle’ and within walking distance of the city’s major cultural, business, shopping and dining venues.

​The first approach to the market was to sell the hotel encumbered by a management contract with Belmond but after 6 months JLL noticed that selling this iconic hotel vacant possession was much more profitable for the owners. This transaction completed in May 2015 and represented a record in the hotel industry in Madrid (778,000 € per key), without any doubt the most important transaction in Madrid over the last 10 years.

The purchasers will each hold a 50% interest in the joint venture and the hotel will undergo a comprehensive renovation in 2017. This purchase marks Mandarin Oriental’s first venture in Madrid, and they will manage this asset under a long-term management agreement.

This transaction demonstrates Madrid's increasing attractiveness to international investors who are looking to invest in a resurging market. JLL was able to secure a record price for a trophy hotel due to collaboration of their transaction teams across Spain and EMEA.