NH Hoteles has converted an impressive 19th century mansion in the arts district of Madrid into a 5-star hotel.

The renovation of the building, originally built in 1808 by Jorge Duran and designed by Juan de Villanueva, who designed the Prado Museum, brings to life 84 luxury guestrooms.

The new NH Palacio de Tepa is designed by the firm Ramon Esteve in grays and beiges, meant to play with the light that flows through the large windows and skylights, especially throughout the penthouse rooms. Different interior design options exist across room types, with guestrooms on the fifth floor featuring mansard roofs and minimalist decoration.

Lighting is the main feature of the hotel that has been carefully renovated, respecting the original domes of the building and its typical balconies. Two whitewashed interior patios, renovated in accordance with their former use as “corrala” yards, allow light to come in through the interior corridors of the hotel.

InterContinental Hotels Group (IHG) has signed a franchise agreement to open a Hotel Indigo in Madrid – the first Hotel Indigo signing in Continental Europe.

Hotel Indigo Madrid is set to open in spring 2012. The 89-bedroom hotel, owned by Orion, will be situated in the centre of Madrid, close to the Opera House, the Almudena Cathedral and the main museums in the area. It also has easy access to the main conference centres and train stations, making it ideal for both business and leisure guests.

Hotel Indigo is IHG’s newest hotel brand and offers guests boutique hotel design as well as the peace of mind they get from staying with a large hotel group. There are currently 34 hotels open and a further 52 are in the global pipeline. The brand began its global roll out in January 2009 in the UK with the opening of Hotel Indigo London Paddington.

The Hotel Indigo brand standards don’t dictate the number or size of rooms in a property, making it ideally suited to conversion properties. In the current economic environment, conversions are attractive to developers because they require less financing than new builds and can be up and running in a shorter period of time.

Kirk Kinsell, IHG’s president for Europe, Middle East and Africa, said: “Now is an ideal time for us to continue to grow the Hotel Indigo brand and Madrid was top of our list for expanding the brand into Continental Europe. Madrid is an exciting, vibrant city and a thriving tourist and business destination, making it ideal for Hotel Indigo guests. We look forward to signing more Hotel Indigo properties in cities across Europe.”

Hotel Indigo first launched in Atlanta in 2004. Last year Hotel Indigo came to Europe when the Hotel Indigo London Paddington opened. The second Hotel Indigo in Europe, in London’s Tower Hill opened earlier this month. It has 46 bedrooms and is situated moments from the city’s iconic Tower Bridge. IHG plans to open its first Hotel Indigo in Asia later this year. Hotel Indigo Shanghai on the Bund is expected to open to guests in autumn. IHG has also signed the first Hotel Indigo in Southeast Asia. Hotel Indigo Bangkok Wireless Road is expected to open by the end of 2012.