Palace Hotel Madrid
A luxury hotel in Madrid, Spain, now part of the Westin brand.
Last updated August 31, 2026
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Overview
The Palace Hotel Madrid is a historic luxury hotel in Madrid's Centro neighborhood. Opened on 12 October 1912, it was developed by Belgian entrepreneur Georges Marquet following a personal suggestion from King Alfonso XIII. The property was designed by the Monnoyer Studio together with architect Leon Eduard Ferrés i Puig, and was conceived as a major European-style hotel at a time when Madrid was expanding its international and political role. The hotel became notable for the technical and service standards incorporated into its original design. It was described as the first hotel in Spain, and only the second in the world, to provide a private bathroom in every guest room. It was also an early Spanish hotel to install a telephone in every room. These features helped establish its identity as a modern luxury property rather than simply a grand lodging house. Its central location, architecture and public spaces also made it a venue for diplomacy, journalism, cultural life and political gatherings. During its first decades, the hotel hosted a wide range of internationally recognized guests, including Igor Stravinsky, Pablo Picasso, Marie Curie, Mata Hari, Josephine Baker, Buster Keaton, Richard Strauss, Federico García Lorca, Luis Buñuel and Salvador Dalí. During the Spanish Civil War, from 1936 to 1939, the hotel was converted into a military hospital. Its well-known glass-domed lounge served as an operating theatre because its glazed roof provided abundant natural light. The property was restored after the war in 1939, reportedly at a cost of four million pesetas. The hotel's international profile continued after the Second World War. Guests and visitors associated with the property included Ernest Hemingway, Orson Welles, Lauren Bacall, Rita Hayworth, Ava Gardner, and the Duke and Duchess of Windsor. The building also remained connected to major Spanish political events. During the attempted coup of 23 February 1981, members of the interim government occupied the general manager's office while more than 200 international journalists used the hotel as a base. The Spanish Socialist Workers' Party celebrated its decisive 1982 election victory at the property, and the hotel later hosted participants in the 1991 Madrid Conference concerning Israel and the Palestinians. Ownership and brand affiliations changed repeatedly in the late twentieth and early twenty-first centuries. Georges Marquet's heirs sold the hotel to Spanish businessman Enrique Maso in 1977. Maso sold it to CIGA Hotels, an Italian luxury chain owned by the Aga Khan, in 1989. ITT Sheraton acquired CIGA in 1995 and placed the hotel in its ITT Sheraton Luxury Collection. Following Starwood Hotels' acquisition of Sheraton in 1997, The Luxury Collection became a separate brand. The property was designated a Spanish Bien de Interés Cultural in 1999. On 1 March 2000, Starwood transferred the hotel to its Westin division and renamed it The Westin Palace Madrid. In 2005, Starwood sold the hotel as part of a package of 38 international hotel properties to Host Marriott. The reported package value was 4.1 billion US dollars, although the source describes the transaction as a portfolio sale rather than assigning a separate value to this hotel. In 2006, the property was sold to Archer Hotel Capital, an investment group jointly owned by Singapore-based GIC Real Estate and Dutch pension investment company APG. Renovation work has been carried out in stages. Guest rooms began to be renovated floor by floor in 2008, while major public-area renovations began in June 2023. On 1 March 2024, Archer Hotel Management assumed direct operation. After the renovation program concluded, the hotel left Marriott's Westin brand on 14 March 2025 and returned to The Luxury Collection, adopting the name The Palace, a Luxury Collection Hotel, Madrid. Its current positioning combines historic architecture, central Madrid location, heritage hospitality and contemporary luxury accommodation.
History
The Palace Hotel Madrid was developed by Belgian entrepreneur Georges Marquet after King Alfonso XIII encouraged the creation of a major luxury hotel in Madrid. Designed by the Monnoyer Studio and architect Leon Eduard Ferrés i Puig, it opened on 12 October 1912. The hotel distinguished itself through modern guest-room infrastructure: each room had a private bathroom, an arrangement described as unprecedented in Spain and exceptionally early by international standards, and each room also had a telephone. The property quickly became part of Madrid's cultural and international life. Early guests included artists, musicians, scientists, performers and writers such as Igor Stravinsky, Pablo Picasso, Marie Curie, Josephine Baker, Buster Keaton, Federico García Lorca, Luis Buñuel and Salvador Dalí. During the Spanish Civil War, the hotel was requisitioned as a military hospital. The glass-domed lounge was adapted into an operating theatre, taking advantage of the daylight entering through the dome. The hotel was restored in 1939, with the restoration reported to have cost four million pesetas. Its postwar guest list included Ernest Hemingway, Orson Welles, Lauren Bacall, Rita Hayworth, Ava Gardner and the Duke and Duchess of Windsor. The hotel also served as a setting for important political and diplomatic events. During the attempted coup of 23 February 1981, the general manager's office was occupied by members of the interim government and the building accommodated a large group of foreign journalists. In 1982, the Spanish Socialist Workers' Party held its election celebration there. In 1991, the hotel hosted participants in the Madrid Conference concerning Israel and the Palestinians. The ownership history reflects the consolidation and restructuring of the international luxury-hotel industry. Marquet's heirs sold the property to Enrique Maso in 1977. Maso sold it to CIGA Hotels, then owned by the Aga Khan, in 1989. ITT Sheraton acquired CIGA in 1995 and placed the Madrid property in its luxury portfolio. After Starwood acquired Sheraton in 1997, The Luxury Collection operated as a distinct brand. The hotel received Bien de Interés Cultural designation in 1999. Starwood moved it to Westin on 1 March 2000, creating the identity The Westin Palace Madrid. In 2005, Starwood sold the hotel in a package of 38 international properties to Host Marriott. The cited portfolio transaction was valued at 4.1 billion US dollars, but no separate hotel-level price is established in the supplied material. In 2006, ownership passed to Archer Hotel Capital, jointly owned by GIC Real Estate and APG. Guest-room renovations began progressively in 2008, and extensive public-area renovations began in June 2023. Archer Hotel Management took over direct operation on 1 March 2024. On 14 March 2025, after renovation work concluded, the property moved from Westin back to The Luxury Collection and adopted its current name, The Palace, a Luxury Collection Hotel, Madrid.
- 2025
Return to The Luxury Collection
[1]On 14 March, the renovated property left Westin and reopened under The Luxury Collection as The Palace, a Luxury Collection Hotel, Madrid.
- 2024
Archer Hotel Management assumes direct operation
[1]Archer Hotel Management took direct operational control on 1 March.
- 2023
Public-area renovation begins
[1]Major renovation work on public areas began in June.
- 2008
Guest-room renovation program begins
[1]Guest rooms began to be renovated progressively, floor by floor.
- 2006
Sale to Archer Hotel Capital
[1]The property was sold to Archer Hotel Capital, jointly owned by GIC Real Estate and APG.
- 2005
Portfolio sale to Host Marriott
[1]The hotel was included in Starwood's sale of 38 international properties to Host Marriott.
- 2000
Move to Westin
[1]On 1 March, Starwood transferred the property to Westin and renamed it The Westin Palace Madrid.
- 1999
Bien de Interés Cultural designation
[1]The hotel was designated a Spanish cultural heritage property.
- 1995
ITT Sheraton acquires CIGA
[1]ITT Sheraton acquired CIGA and placed the hotel in its luxury collection.
- 1989
Acquisition by CIGA Hotels
[1]Enrique Maso sold the property to CIGA Hotels, an Italian luxury chain owned by the Aga Khan.
Products and positioning
A heritage luxury hotel positioned around Madrid history, architectural character, central location, high-end accommodation and association with The Luxury Collection.
Luxury hotel · 1912
The Palace, a Luxury Collection Hotel, Madrid
The property's principal offering is full-service luxury accommodation in Madrid's Centro district. Its appeal combines a landmark historic building, central location, heritage associations, guest rooms and suites, dining and bar facilities, and public spaces suitable for social, cultural and business events. The hotel has operated under several international luxury-hotel identities, most recently returning to The Luxury Collection in March 2025.
Hospitality and events venue · 1912
Historic glass-domed lounge
The glass-domed lounge is one of the hotel's defining architectural and experiential spaces. Historically, its natural light enabled it to serve as an operating theatre during the Spanish Civil War. In the hotel's hospitality role, the dome contributes to the property's heritage identity and provides a distinctive setting within the public areas.
Brand decisions
2025
Return from Westin to The Luxury CollectionGeneration changeBackground
After staged guest-room work and major public-area renovations, the property was repositioned within Marriott's luxury-brand portfolio.
Action taken
On 14 March 2025, the hotel left Westin and became The Palace, a Luxury Collection Hotel, Madrid.
Aftermath
The change restored the property's association with The Luxury Collection while retaining its historic Madrid identity.
2024
Direct operation assumed by Archer Hotel ManagementStrategyBackground
The property owner changed its operating arrangement during the renovation and repositioning period.
Action taken
Archer Hotel Management assumed direct operation of the hotel on 1 March 2024.
Aftermath
The direct-management change was followed by the property's 2025 move back to The Luxury Collection.
2023
Major public-area renovationStrategyBackground
The owners had already been renovating guest rooms progressively since 2008 and began a more substantial renewal of the hotel's public areas in June 2023.
Action taken
Major public-area renovation work was initiated while preserving the property's historic identity.
Aftermath
The work preceded the property's return to The Luxury Collection in March 2025.
2005
Inclusion in Starwood's portfolio sale to Host MarriottM&ABackground
Starwood sold a portfolio of 38 international hotel properties as part of a broader hotel real-estate transaction.
Action taken
The Palace Hotel Madrid was included in the sale to Host Marriott.
Aftermath
The hotel property was subsequently sold to Archer Hotel Capital in 2006.
Reported value of the 38-property portfolio transaction. 4.1 billion US dollars (2005)
2000
Transfer from The Luxury Collection to WestinStrategyBackground
After Starwood acquired Sheraton and reorganized its hotel brands, the Madrid property was moved into the Westin division.
Action taken
The hotel was renamed The Westin Palace Madrid on 1 March 2000.
Aftermath
The move gave the property a Westin identity until its return to The Luxury Collection in 2025.
Recent events
- 2025
Property changes from Westin to The Luxury Collection[1]
M&A · Product generation · Leadership change
Following renovations and a change in operating arrangements, the hotel left Marriott's Westin brand and returned to The Luxury Collection as The Palace, a Luxury Collection Hotel, Madrid.
- 1991
Hotel hosts participants in the Madrid Conference[1]
Other
The property hosted participants in the Madrid Conference involving Israel and the Palestinians.
- 1982
Hotel hosts 1982 election celebration[1]
Other
The Spanish Socialist Workers' Party celebrated its landslide election victory at the hotel.
- 1981
Hotel becomes a base during the attempted coup of 23 February[1]
Other
Members of the interim government took over the general manager's office during the attempted coup, while more than 200 international journalists gathered at the hotel.
- 1939
Hotel restored after the Spanish Civil War[1]
Other
The property underwent postwar restoration, with the cited historical account placing the cost at four million pesetas.
- 1936
Hotel converted into a military hospital during the Spanish Civil War[1]
Other
During the Spanish Civil War, the property ceased operating solely as a hotel and was used as a military hospital. Its glass-domed lounge served as an operating theatre.
Sources2 sources
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