According to real estate consultancy CBRE, investment in hotels in Spain in the first quarter of 2023 was 365 million euros. This wasn't a record as it was below the figure for the first quarter of 2022, when coming out of the pandemic provoked something of a boom.
Nevertheless, it was indicative of the attractiveness for investors, with Mallorca very much to the fore - the five-star Palace de Muro Hotel in Playa de Muro, which will be managed by Hyatt, was acquired by investment fund Stoneweg in an 83 million euro deal that involved the purchase of two Globalia Be Live hotels in Spain (the other is a four star in Tenerife).
Investment in the luxury end of the hotel market is confirmed by developments that have now been completed or soon will be.
The Ikos Porto Petro is the first Mallorcan venture by the Greek Ikos group which specialises in luxury all-inclusive. On the site of what years ago was the Club Med complex in Mallorca, starting prices are 338 euros, though three-bedroom bungalows will be available at close to 2,000 euros per night.
Virgin Limited Edition's Son Bunyola in Banyalbufar is scheduled to open on June 16. Richard Branson's dream project, restoration works started in June 2021. It will have 26 luxury rooms and suites as well as two restaurants, lounges and several terraces. The estate also houses three luxury villas: Sa Punta de s'Àguila, Sa Terra Rotja and Son Balagueret.
Then there is the Hotel Formentor (above, photo Paco Martínez), which is due to open at Easter 2024, issues with the redevelopment seemingly now resolved. The Emin Capital fund acquired the hotel from the Barceló Group for 165 million euros. The new hotel will have twelve rooms fewer than the original - 110 as opposed to 122.