Until recently the Mallorca hotel industry was very much a local affair. The majority of hotels were owned by Mallorcans and as a result of their success locally they were able to expand across the globe. Two Palma-chains are amongst the biggest in the world. But all this is changing.
Big international hotel groups are now investing heavily in Mallorca especially in the five-star bracket. At least three hotels, owned by big important chains, will open next year in Mallorca, including the Virgin Group which is due to open a new hotel in Banyalbufar.
Even at the lower end of the market, hotels are being snapped up by international groups and hedge funds. This state of affairs underlines the fact that owning a hotel in Mallorca is good business. It will also lead to greater competition with the “big boys” competing directly against each other in Mallorca like they do across the globe. It is yet another sign of how international the island has become. These days it is an international tourist industry dealing with international tourists.
Basically, I think it is positive for the island and the tourist industry. It will also help Mallorca reach new markets. It is amazing when you think about it, that just 50 years ago a group of pioneering businesspeople founded what would become a multi-billion industry which now attracts some of the biggest hotel chains in the world.