Increasing number of luxury hotels on Mallorca
Not only the demand for luxury properties on Mallorca is increasing, the interest in exclusive hotels on the Balearic Islands is also growing. This motivates more and more hoteliers and property developers to invest in their hotels to upgrade them to four to five-star hotels, or to build new luxury resorts. In the year 2000 were only 13 five-star hotels on Mallorca located, and nowadays we already have 37 luxury hotels on the island, where more than 8,000 guests can be accommodated.
Mallorca party mile will more exclusive
Especially the Playa de Palma, which was long time regarded only as party mile, should be lifted on a qualitatively higher level. Due to its central location to the airport and the capital Palma, the area around the Playa de Palma offers a lot of potential and is therefore particularly sought after.
One of the first hotels who wanted to become a five-star hotel, was the hotel Garonda on the Playa de Palma. They spent almost 5.5 million euros for the completely refurbishment and modernization of their hotel. To offer their guests more comfort and luxury, the hotel was upgraded by an additional floor. Furthermore their rooms were enlarged in spacious suites with generous terraces. Altogether, increased the number of rooms by formerly 133 up to 149.
In addition, the hotel obtained new accesses directly to the beach or to the sun terraces and the newly built tapas restaurant. Due to the modernization and enlargement of the rooms, the prices could adjust consequently also towards the top. The prices for junior suites were up to 20 percent increased on average. But in some rooms the price was only raised to five to seven percent. When the hotel has successful seasons, the investments that they have inserted, will be amortized within five years.
New five-star hotels on the Playa de Palma
To allow higher returns for the Playa de Palma, the government of the Balearic Islands have adopted a master plan via decree-law in summer 2013. Furthermore the classification for the star assignment was totally changed and tailored exactly to the needs of the hoteliers. All this had the effect that an additional floor for the hotels was approved, if at the same time is invested in higher quality.
The hotels Hipotels and Iberostar are planning to build new luxury hotels on the Playa de Palma in 2016. In addition there are also several new building projects in planning, some of them are already under construction. According to the industry association FEHM, up to EUR 500 million were invested since last winter for renovation and modernization, as well as for the construction of luxury resorts on the whole Balearic Islands.
By the appreciation of the Playa de Palma, of course the real estate agents on Mallorca also benefit because then again, the demand will increase. There are already some investors who have bought plots and buildings, to redevelop them to luxury apartments. Quite particularly coveted Mallorca properties are located in close proximity to the beach.