The 167 room hotel has been acquired in a 50/50 joint venture with Omega Capital, a major Spanish investment company.  Orient-Express Hotels will operate the hotel under a long-term management contract. The Hotel Ritz is located in the cultural heart of the historic center of Madrid beside the Prado Museum, opposite the Thyssen Museum and close to the Royal Palace, the Botanical Gardens and the Parque

RITZ MADRID  Plaza De La Lealtad 5  Madrid, Spain

One of the original grand luxury hotels of Europe, the Hotel Ritz was inspired by the desire of King Alfonso XIII to build a luxury hotel to rival the Ritz in Paris.  Opened in 1910, it combined French classic hotel design with the most advanced facilities of the day.

Today, 60 percent of guests at the Hotel Ritz are traveling on business.  Luxury hotel demand in Madrid remains buoyant and high quality rooms are in short supply.  The hotel has 30 guest suites; four conference and banqueting suites; Goya, an indoor restaurant with 74 covers and the famous Ritz Terrace with 66 covers in the hotel�s beautiful gardens.

As the capital city of Spain, the third most visited country in the world, Madrid is one of Europe�s major cultural centers, with strong international visitor demand.  It has also become one of the world�s top conference destinations.

Commenting on the announcement, Simon Sherwood, President of Orient-Express Hotels said, �We are proud to have been able to acquire this world-famous landmark property together with Omega and to manage it within Orient-Express Hotels.  We have agreed with Omega on a €25 million improvement plan which will include a conservatory type dining terrace, additional and better conference, spa and banqueting facilities, upgrade of technical aspects and enhancement of the garden.�

Mr Oscar Fanjul, Vice Chairman of Omega, said that they see the Ritz as a very important asset in their real estate portfolio which includes commercial space, offices and hotel properties in both the US and some European countries.
The Ritz is Orient-Express Hotels� second property in Spain, the other being La Residencia in Mallorca, acquired in February 2002.