A&G Real Estate, the property division of the private bank A&G, has acquired a building in Madrid with the aim of transforming it into a luxury hotel. The property is situated at 43 Avenida de Alberto Alcocer, in the Chamartín district, close to the northern section of the Castellana, according to a report by El Confidencial.
The property currently comprises 160 apartments intended for short-term rental, according to public records for the building and information marketed under the name ‘Apartamentos Alcocer 43’. The complex offers furnished studios and apartments for monthly stays.
The transaction comes against a backdrop of growing building conversions in Spain. In 2025, 73 changes of use were recorded, compared with the 70 identified in 2024, affecting more than 392,000 sqm, according to data from CBRE via its Multistrategy initiative.
Nine out of ten conversions were for residential and hotel use, accounting for 49% and 42% respectively, in a market shaped by pressure from residential and tourist demand. In 55 % of the cases the original use of the properties was office space, with nearly 240,000 sqm beginning their conversion from this use in 2025.
In the hotel sector, CBRE noted a trend towards conversions into high-end establishments and holiday apartments located in central areas. The consultancy also forecasts that Madrid will account for 17% of the luxury hotel openings planned in Spain in 2026, with nine five-star establishments.
Madrid also continues to play a central role in this asset transformation market. CBRE has analysed more than 500,000 sqm suitable for change of use in the capital alone, where nearly 70% of the transactions recorded in 2025 were located within the M-30 ring road and 71% involved office buildings.
Sixty-two per cent of the changes of use identified in Spain over the past year were linked to a sale and purchase transaction, with an investment volume of €823 million. Madrid accounted for just over half of the transactions involving a sale and purchase, with 24 cases, and 83% of the investment volume, equivalent to €689 million, according to the consultancy firm.
