Madrid approves the hotel in the Casa Palazuelo on Calle Mayor

The Madrid City Council Plenary has definitively approved the Special Plan authorizing the establishment of a hotel in the protected building at number 4 Calle Mayor, the Casa Palazuelo, in the Centro district. The agreement, adopted in the plenary session of July 21, 2026, is published in the Official Gazette of the Community of Madrid number 220, dated September 15, 2026, pages 353 to 359, within section III of Local Administration.

The Special Plan, promoted by the company Lutuenas, S. L., is processed under article 59.4 of Law 9/2001, of July 17, on the Land of the Community of Madrid, in relation to articles 57 and 62.2 of the same regulation. The file is listed under number 135-2024-00153, and its definitive approval concludes the administrative process.

A property of maximum protection

The Casa Palazuelo is cataloged under number 03089 of the Catalog of Protected Assets and Buildings of the General Urban Development Plan of Madrid, with protection level 1, singular grade. Furthermore, it is Cultural Interest Asset (BIC) number 301, declared a Monument by Decree 84/1997, of July 10, published in BOCM number 180 of July 31, 1997.

The property is integrated into several heritage protection areas:

• The Historic Complex of buildings of the Puerta del Sol and the Recinto de la Villa de Madrid.
• The Archaeological and Paleontological Interest Zone (ZPA) Historic Precinct.
• The Specific Planning Area of the Historic Center (APE 00.01).
• The Buffer Zone of the Paisaje de la Luz.

Among the movable assets that form an essential part of the building’s history are the bronze and crystal lamps and sconces, and two wooden and crystal elevators.

Hotel use and planned works

The Special Plan authorizes tertiary use, lodging class, in the modality of a hotel in an exclusive building, as an alternative use alongside the use of offices, which is the building’s original use. The maximum buildable area corresponds to that of the original building, 7,544 m², and the envelope will be that of the existing property.

The permitted works, up to the limit of intervention III b) of partial restructuring, include:

• The construction of a new staircase and an adjacent elevator, to the north of the west side courtyard, in the position of the staircase from the original project by architect Antonio Palacios, with two flights instead of four.
• The expansion of the original dumbwaiter shaft, which will connect all floors, including the roof.
• The replacement of carpentry and closing elements.
• Two access structures to the roof and the installations upon it without exceeding the height of the parapets.

The minimum garage-parking provision corresponds to the standard of one space per 100 m² of buildable area (75 spaces), although the building may justify an exemption from this provision due to its heritage protection conditions.

Allegations and procedure

During the public information period, allegations were submitted, which were partially upheld or dismissed according to the technical-legal report of the General Directorate of Planning dated July 3, 2026. The agreement is referred to the Administrative Registry of the Department competent in urban planning matters, and the document is signed by the Director General of Planning, María Ángeles Fernández Hernando, and the Deputy Secretary General of the Plenary, Juan José Orquín Serrano.

An administrative appeal may be filed against the resolution before the corresponding Chamber of the High Court of Justice of Madrid within two months from the publication of the announcement.

The conversion of Casa Palazuelo into a hotel represents a milestone in the debate between the enhancement of heritage and tourist pressure on the Historic Center of Madrid. The Special Plan conditions the intervention on the conservation of protected elements and the elimination of negative impacts, which will mark the balance between the new hotel use and the preservation of one of the most unique properties in Puerta del Sol.

Source: Official Gazette of the Community of Madrid, no. 220, September 15, 2026, section III (Local Administration), pp. 353-359 (official reference: file 135-2024-00153).