With its prime positioning right next door to the Prado museum, Madrid's iconic Hotel Ritz was expected to reopen this summer as a Mandarin Oriental, following the most extensive restoration it has had in its 110-year history. Sadly, that plan has been delayed to 2021 following the onset of the COVID-19 pandemic and the challenging market conditions it has caused.
As it turns out, only four of Madrid's 34 five-star hotels are even open at the moment, and among that handful of properties occupancy rates are hovering under 18 per cent, according to the Hotel Business Association of Madrid. So it would seem the decision to delay the reopening of this legendary hotel was probably a wise one.
"The group saw substantial underlying losses in the first half of the year as a consequence of the COVID-19 pandemic," Mandarin Oriental chairman and Jardine scion Ben Keswick said in a statement, after the group revealed a loss of 101.5 million dollars in the first half of 2020. That followed a positive 2019, in which it made a profit of 41.2 million dollars. "A material recovery in business levels is not expected until 2021 at the earliest, and a significant further loss is therefore likely in the second half of 2020."
Keswick added that the company's favourable financial position made it well placed to weather a prolonged downturn: as of the end of June, the group held 187 million dollars in cash reserves and 217 million dollars in available credit lines.
So what can guests expect of this new property when it does finally open its doors? Spanish architect Rafael de La-Hoz was in charge of the historical restoration, while French designers Gilles & Boissier oversaw the sweeping interior changes, which they say aim to broaden the property's appeal to local and international guests alike. There are now 153 rooms, including 53 suites, alongside extensive new leisure and wellness facilities. Chef Quique Dacosta, one of the most celebrated chefs in Spain, has been put in charge of leading the design, development and management of all culinary operations.
The hotel was designed and built under the supervision of the legendary hotelier César Ritz, first opening its doors in 1910, five years after the Ritz in Paris. Times have changed, however, and apart from the beautiful Belle Époque exterior, nothing of the old décor has remained, following an extensive renovation bill footed by the new owner, the Olayan Group of Saudi Arabia. It certainly sounds promising, and we will bring you a first-hand review as soon as we can.
