Madrid approves the Special Plan for the Casa Palazuelo on Calle Mayor

The Madrid City Council Plenary, in a session held on July 21, 2026, definitively approved the Special Plan for the building located at Calle Mayor number 4, in the Centro District, promoted by Lutuenas, S.L., under case file 135-2024-00153. The agreement is published in the Official Gazette of the Community of Madrid number 220, dated September 15, 2026, in section III of Local Administration, Urban Planning.

The approval was processed in accordance with article 59.4 of Law 9/2001, of July 17, on Land of the Community of Madrid, in relation to articles 57 and 62.2 of the same regulation. During the public information period, objections were submitted, which were partially upheld or dismissed according to the technical-legal report of the General Directorate of Planning dated July 3, 2026, which will remain available to the objectors on the municipal transparency page.

A protected property of high historical value

The building, known as “Casa Palazuelo”, is listed in the Catalog of Protected Assets and Buildings of the General Urban Development Plan of Madrid under number 03089 with protection level 1, singular grade. Additionally, it is Asset of Cultural Interest (BIC) number 301, declared a Monument by Decree 84/1997, of July 10 (BOCM no. 180, of July 31, 1997).

The property is integrated into several protected environments:

• Historical complex of buildings of Puerta del Sol and Recinto de la Villa de Madrid.
• Archaeological and paleontological interest zone (ZPA) of the Historical Precinct.
• Specific Planning Area of the Historic Center (APE 00.01).
• 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 restructuring works

The Special Plan aims for the conservation, protection, and rehabilitation of the heritage, allowing the implementation of tertiary lodging use in the form of a hotel in an exclusive building. 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 include:

• Specific restructuring for the implementation of hotel use.
• Partial demolition as provided for in the planning maps.
• Construction of a new staircase and an adjacent elevator, to the north of the west side courtyard, in the position of the original project by architect Antonio Palacios, with 2 flights instead of 4.
• Expansion of the original freight elevator shaft.
• Replacement of carpentry and closing elements.
• Two roof access structures and installations that do not exceed the height of the parapets.

Regarding parking, the minimum provision would be 1 space per 100 m² (75 spaces), although the building may justify an exemption from this provision due to its heritage protection conditions.

Sustainability and resources

Measures derived from the specific sustainability and energy efficiency study shall be mandatory, in accordance with article 41.3 of the Air Quality and Sustainability Ordinance of the Madrid City Council. This agreement concludes the administrative process; therefore, a contentious-administrative appeal may be filed against it before the corresponding Chamber of the High Court of Justice of Madrid within two months of its publication.

The document, signed in Madrid on August 14, 2026, by the Director General of Planning, María Ángeles Fernández Hernando, and the Deputy Secretary General of the Plenary, Juan José Orquín Serrano, represents a significant step toward enhancing the value of one of the most unique properties in the capital’s historic center, by reconciling a new hotel use with the strict conservation of a protected monument.

Source: Official Gazette of the Community of Madrid, no. 220, September 15, 2026, section III (Local Administration, Urban Planning), page 353 (official reference: BOCM-20260915-66).