Madrid hotels are showing "solid" growth with revenue per available room (revPAR) nearly doubling in the last year.
New figures, from a HotelBenchmark Survey by Deloitte, found that revPAR in the Spanish capital rose by 7% to 80 over the last year.
The consultants attributed the improvement to Madrid's growth as a venue for international conferences, the expansion in the Spanish economy and the city's new airport with increased passenger capacity.
Deloitte said the new figures were in "stark contrast" to those of 2003 and 2004 when revPAR declined and occupancy dropped to 64%.
Occupancy was now at 70.2%, a 2.1% rise on the previous 12 months.
One of the main reasons for the improvement Deloitte said was international organisations deciding to hold their events in Madrid.
The city now ranked 19th in the world list of most popular conference destinations according to the International Congress and Convention Association (ICCA).
Expansion at Madrid Barajas Airport, including a new 670m terminal which opened in 2006 and two more runways had increased passenger capacity to 70m.
The airport was now becoming a major European hub.
Airline chiefs call for fair ETS
European airline chiefs called for a fair Emissions Trading Scheme (ETS) which did not discriminate against European carriers.
At the spring assembly of the Association of European Airlines (AEA) in Brussels, the ceos of the continent's leading carriers said the right balance between economy and ecology was the "key" element for sustainable aviation growth.
But they said the ETS proposed by the EU would "simply create unnecessary costs for the airlines and reduce European competitiveness with no measurable impact on the environment."
At the meeting, the ceos also called for a Single European Sky because it would cut delays and be good for the environment.
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