The Ritz Hotel in the heart of Madrid, the capital city of Spain, will close in 2011 for at least twelve months to undergo renovation works in what will be the largest redevelopment in the hotel’s 100 year history. Alicia Koplowitz, the main shareholder of the hotel and one of the richest women in Spain, will invest 50 million euro in the project.

The refurbishment of this most symbolic of all hotels in Madrid had initially been estimated at 100 million euro and was scheduled for early 2009. However, the work had to be delayed due to the onset of the financial crisis in Spain and the delay in obtaining the necessary permits needed from the Council of Madrid given that it is a building of historical significance. The Ritz Madrid was built in 1910 by King Alfonso XIII of Spain and, after changing owners several times, ended up belonging to the investment company Omega Capital and the American Orient Express chain.

However, as happened with many other businesses, the global financial crisis has taken its toll on the five star luxury hotel market from the summer of 2007 onwards. Many hotels in Spain, like the Ritz, had to reduce staff and yet others decided to make the most of the bad times and close for a period in order to refurbish their hotels from top to bottom.

The Ritz Hotel in Madrid has 137 rooms and 30 suites, each decorated with an individual and unique design and marble bathrooms.  From 2012, when the renovation works are expected to have been completed, the hotel will also have a spa with one of the most glamorous areas of massage and hydrotherapy available in all of Spain.
 
Following their acquisition of the Hotel Ritz in Madrid the new owners made an investment of some 25 million euro to renovate the garden terrace and the conference rooms. However, this initial refurbishment caused problems for many of the guests whilst the work was going on and for this reason, the management decided to close the hotel while this latest renovation is taking place next year. The Villa Magna, one of the five major luxury hotels in the capital of Spain, showed the way by closing completely during its recent renovation. This hotel remained closed for 16 months after investing 50 million euro in its complete renovation. During this period, the management of the chain decided to donate half of their furniture to an NGO and also to provide training courses to its employees who continued to receive their full pay for the whole time the hotel was closed.