At No. 3 on the list, Madrid joins Barcelona as one of only two pairs of cities in the countdown from the same country.
The country's numbers have been solid for a few years now, and for 2016, Madrid reached an overall 3.8-percent increase in gross operating profit per available room.
Madrid is the economic, financial and administrative hub of Spain, and boasts a vast cultural and artistic heritage. First and foremost, the city remains a business destination, but due to its seemingly limitless cultural attractions, it is also establishing a reputation as a major international leisure hot spot. As a result, tourist arrivals have grown steadily since 2015.
“Hotel supply in Madrid is constantly growing and the interest by international hotel brands, such as Mandarin Oriental and Four Seasons, confirms Madrid’s reputation as a strong tourism destination. However, the market will remain dominated by domestic hotel management companies for the foreseeable future," said Luis Arsuaga, Head of Hotels & Hospitality in Spain & Portugal.
“The macro-economic environment in Spain will continue to push domestic demand, while the weakening of the Euro, coupled with favorable economies in feeder markets will continue to attract international visitors.”
Spain-based Meliá Hotels remains bullish on Madrid, anticipating a growing influx of visitors as the city continues to recover from the global financial crisis. Madrid broke tourism records in 2015 with more than 11 million visitors, and the number of international tourists grew by 11.8 percent (and spending by 14.9 percent) in the first 10 months of 2016.
Meliá currently operates 22 hotels with more than 4,700 rooms in Madrid. The recovery, which began in 2014, has led to a RevPAR increase of up to 30 percent since 2013, especially due to price increases. The performance indicates a continued upward trend, placing them above RevPAR and occupancy figures for the other hotels in the city.