El Corte Inglés to build a hotel in Madrid
What: El Corte Inglés’ plan to transform two buildings it owns into a hotel establishment should be authorized this Wednesday by the Urban Development Commission of Madrid City Hall.
Why is it important: El Corte Inglés already owns several hotel assets through a joint venture with Grupo Matutes , which includes Only You Hotels, Aire Hotels that have recently been sold. It is, however, a real estate activity, which does not fall under Viajes El Corte Inglés, but a 50/50 joint venture between Grupo Corte Inglés and Grupo Matutes.
The new company resulting from the merger between Viajes El Corte Inglés and Logitravel plans to fully enter the hotel sector in 2022 through various modalities that will allow it to control the product and increase its profit margins, thus crossing a new step in its strategy to strengthen its vertical integration model.