The five-star Valparaíso Palace & Spa Hotel in Palma is a potential purchase target for the Barceló Group, one of Mallorca's 'big four' hotel companies. Opened in 1974, the hotel was one of very few five-star hotels in Mallorca fifty or so years ago.
Originally owned by the Alba family, it was later acquired by the Mallorcan Grupotel, and in 2014 became part of the Chinese group Jiangsu GPRO, its current owner, which paid 48 million euros. At the time it was said that a reason for this Chinese interest was the development of Chinese tourism in Mallorca. The purchase raised the possibility of direct flights to Palma from China; these have never materialised.
Officially, the owners say they are aiming to bring in an investor to undertake a complete renovation of the hotel for its repositioning in the luxury segment. However, industry sources indicate that the property is on the market and that sale options are also being considered. Barceló is one of the potential buyers. A Spanish investment fund is another.
Given an iconic status in Mallorca's hotel history, it might seem somewhat ironic that Barceló is pursuing this purchase, having sold what is arguably the single most iconic hotel on the island - the Formentor Hotel. The sale in late 2020 to the Barcelona-based Emin Capital, with the Canadian Four Seasons managing the hotel, led to a great deal of controversy.
It is understood that preliminary talks are ongoing regarding a possible sale of the Valparaíso. No firm offers are said to have been made.