Galería Canalejas in central Madrid will transform its empty Food Hall into a high-end spa. The €21.5 million project aims to attract wealthy clients after the previous gastronomic venture collapsed.
Galería Canalejas, one of Madrid’s most prominent luxury destinations, is set for a major transformation after its ambitious Food Hall project shuttered following financial losses. The management has confirmed a €21.5 million agreement with AIRE Ancient Baths Group to open an exclusive wellness centre in the basement of the complex, aiming to draw affluent international and local visitors seeking privacy and premium experiences.
The new spa will occupy around 2,200 square metres on the lower level of the building, with a dedicated entrance on Calle de Alcalá. The investment is expected to generate approximately 100 jobs. This move comes after the main operator of the Food Hall, Mad Gourmets, entered insolvency proceedings, having seen its losses soar from just over €70,000 in 2022 to nearly €650,000 in 2023, despite a 25% increase in revenue. The failed gastronomic space, once home to 25 eateries, had dwindled to fewer than half that number before closing its doors about eighteen months ago.
While the upper floors of Galería Canalejas continue to attract luxury shoppers, the basement’s lack of natural light and absence of terraces proved a challenge for high-end dining. Analysts suggest that the Food Hall’s reliance on impulse purchases and heavy foot traffic was overly optimistic for a venue with premium prices. In contrast, the new wellness centre is designed to appeal to clients who deliberately seek out exclusive, private experiences—often coordinated through hotels and tour operators, or via loyalty programmes.
According to Karine Titli, general manager of Centro Canalejas Madrid, the decision to pivot towards wellness aligns with a broader strategy to cater to a clientele that values discretion and comprehensive service. The technical complexity of the project means that the opening date will depend on administrative approvals and construction timelines, but the goal is to maintain the highest standards of quality and excellence throughout the process.
AIRE Ancient Baths, known for its luxury spas inspired by ancient Greek, Roman, and Ottoman traditions, already operates in cities such as New York, Chicago, Toronto, London, and Copenhagen, as well as several locations in Spain. CEO Amadeo Serra described the Madrid opening as a long-held ambition, emphasising the importance of securing a truly exceptional site in the capital.
The contrast between the bustling luxury boutiques above and the failed Food Hall below has raised questions about consumer behaviour in Madrid’s high-end retail sector. Local vendors note that while shoppers are willing to spend thousands in stores like Hermès, they were reluctant to dine in a basement, especially with renowned rooftop terraces nearby. Experts point out that luxury dining has evolved, with exclusivity and unique experiences now outweighing mere price or location.
This shift in strategy at Galería Canalejas reflects broader challenges faced by upscale food halls in prime city locations. Similar ventures in Madrid, such as Platea Madrid and Teatriz, have also struggled to sustain momentum. The gap between the average tourist in Puerta del Sol and the elite clientele frequenting the galleries remains significant, with many visitors deterred by the perception of exclusivity and high costs.
As the basement prepares for its transformation from a struggling dining venue to a sanctuary of wellness, the rest of the complex continues to experiment with new luxury experiences. For example, the rooftop terrace of Dani Brasserie will host open-air cinema nights this summer, pairing themed menus with films like Wicked and 007: Casino Royale at €295 per person. This approach highlights the ongoing search for innovative ways to engage Madrid’s most discerning visitors. The story of Galería Canalejas echoes other cases where iconic Spanish properties have undergone dramatic changes, such as the recent opening of Cantora estate to the public after years of neglect, as detailed in this report on Cantora’s transformation.
Madrid’s luxury sector continues to adapt, with operators seeking the right balance between exclusivity, experience, and location. The upcoming spa at Galería Canalejas will test whether wellness can succeed where high-end dining could not, offering a new model for the city’s evolving definition of luxury.
