Bilbao: Meliá Collection, One Shot, Palacio Olabarri… 333 high-end keys to catch up with San Sebastián

Bilbao successfully achieved its cultural transformation in 1997 with the Guggenheim; however, it has never quite mastered its hotel transformation. Thirty years later, the capital of Biscay boasts an average nightly rate of around €140, whereas San Sebastián, an hour’s drive away, exceeds €285. Five high-end projects, totaling 333 keys, representing an 8% increase in capacity, are set to correct this disparity by 2027. They share one common feature: none is a new build; all involve the restoration of an iconic building in the city centre. A project-by-project overview.

The former Correos: 75 Meliá Collection rooms for Sol Daurella

This is the largest undertaking. The former Correos headquarters, a protected 1928 building on Alameda de Urquijo, was acquired for €14.5 million by Sol Daurella, president of Coca-Cola Europacific Partners and one of Spain’s wealthiest individuals, who is adding €21.2 million in renovations, bringing the total to €35.7 million for a 75-room hotel spanning four floors, complete with a spa, gym, a 117-square-metre private garden, and a restaurant. Operations will be managed by Meliá Hotels International under The Meliá Collection brand, reserved for historical properties, which already features addresses in Paris, London, Dubai, and Buenos Aires. Sol Daurella and Meliá have previously partnered on the acquisition of a hotel in Manhattan.

One Shot on Calle Epalza: a swimming pool and €12 million for late 2026

The Madrid-based group One Shot Hotels, which opened properties in Madrid and Ibiza in 2026 and is preparing another in Lisbon, has announced Bilbao for the end of the year. The Calle Epalza address, near the station and the Ribera market, will feature a swimming pool·a rare amenity in the city centre·with an investment of €12 million. One Shot, whose portfolio exceeds 900 rooms, targets the upper-upscale lifestyle segment rather than ultra-luxury: this is the project scheduled to break ground first.

Palacio Olabarri: the Luze group’s five-star hotel facing the Guggenheim

Built in 1897 for businessman José María Olabarri on Paseo del Campo Volantín, a few hundred metres from the Guggenheim, the palace long served as the headquarters of the Bilbao Port Authority. The Navarrese group Luze, which operates Luze Castellana in Madrid and Luze San Sebastián, acquired it for €10.47 million. The plans include 45 five-star rooms, four meeting rooms, a wellness area featuring a spa and gym, two restaurants, and a café. The opening, initially announced for 2025, has been delayed due to the restoration work required for a listed building; it is the city’s most anticipated project and the only one openly targeting five-star status.

6 Mazarredo and the fifth project

At 6 Alameda de Mazarredo, a stone’s throw from the former Ercilla (now a Radisson) and The Artist hotel, the Castilian chain Intelier has applied for a licence to convert an office building into a hotel. A fifth, more modest project completes the count of 333 keys. All share a common constraint: none of these historical buildings has integrated parking, which will require operators to outsource parking and valet services·a crucial detail for luxury clientele arriving by car from the French Basque coast.

Our perspective

Bilbao has long suffered from a paradox: being a global cultural destination with a hospitality sector tailored primarily for conferences. The Carlton, the Domine, and Ricardo Legorreta’s Meliá Bilbao have anchored the upper tier for twenty years without any international luxury brand following suit. These five projects change the scale, but not yet the category: only one aims for five-star status, and no grand palace from a major group has been announced. The true indicator will be the room rates charged by The Meliá Collection and Olabarri: if they cross the €300 threshold during the week, Bilbao will have finally caught up with San Sebastián. Another unknown is political, given the temptation of a tourism moratorium along the lines of Barcelona’s, which the municipal authorities are monitoring closely. Discover hotel news in Spain on La Revue des Hôtels.

Practical information

• Palacio Olabarri · Paseo del Campo Volantín 1, Bilbao · luzehoteles.com
• The Meliá Collection · melia.com
• One Shot Hotels · oneshothotels.com