EXTENDAM completes the sale of a strategically located hotel in central Madrid
EXTENDAM has announced the sale, alongside Continuum Hospitality Group, of a 230-room economy hotel located just 700 meters from Atocha Station, in one of Madrid’s most connected and vibrant districts. The transaction was carried out with Meridia, a leading Spanish institutional investment management company, and advised by Eastdil Secured and Colliers.
A flagship asset aligned with EXTENDAM’s value-creation strategy in transforming urban markets
This deal perfectly illustrates EXTENDAM’s strategy: to support the full lifecycle of hotel assets in fast-evolving urban markets by targeting high-visibility projects with strong value-creation potential—from acquisition to development, operations, and eventual disposal.
A prime location in a thriving economic and transport hub
Located on Méndez Álvaro Avenue, just steps from Madrid’s Atocha Station—a major rail, metro, and bus hub—the hotel attracts a diverse clientele of business and leisure travelers, both domestic and international. The area is also benefiting from a surge in office, residential, and retail developments, reinforcing its long-term appeal.
Madrid continues to demonstrate strong hotel market fundamentals, with robust international tourism, resilient domestic demand, and one of Southern Europe’s highest occupancy and RevPAR growth rates. The city remains a rare European market offering land availability and development potential, particularly in the underrepresented economy segment—making this hotel’s location a key driver of long-term value.
A high-value development project
The project began in 2020 with the acquisition of a 1,147 sqm land plot, followed by the construction of a branded economy hotel. Opened in the second half of 2022, the hotel offers 230 modern rooms, 99 parking spaces, and a 500 sqm ground-floor commercial space, now home to Goiko (premium burgers) and Grosso Napoletano (Italian cuisine). The hotel quickly established itself as a high-quality budget offering, well-suited to a mobile and demanding urban clientele.
The hotel has been operated by Continuum Hospitality Group since opening, a longstanding EXTENDAM partner in the Iberian market.
A brand-free sale and continued operational management
The hotel has been sold free of brand and management contracts, while ensuring operational continuity with Continuum remaining as the operator. The deal reflects EXTENDAM’s strategy of targeting transforming urban locations for high value-added development projects.
This sale crystallizes the value created from the outset of the development process, delivering a return in line with expectations, and demonstrating the resilience and performance of EXTENDAM’s investment approach in major European capital cities.
“We are delighted to conclude this new transaction alongside Continuum Hospitality Group and Meridia. The sale of this strategic asset in central Madrid represents significant value creation, delivering an IRR of around 19%, fully in line with our initial ambitions for the project,” said Anna Cohen, for EXTENDAM.
