IBIZA NEWS The Real Deal
Ibiza tourism property hotel hospitality
Who says Ibiza hibernates in winter?
Many goings on during the winter in Ibiza, the beautiful weather has not slowed down activity on the island.
We have seen hotels changing hands at chunky prices, and demand is still very strong for key hotel assets .
Especially for any opportunity to renovate and upgrade to four and five star,.
A good 2024 season for the hotels further encourage already robust demand, and where supply is evermore scarce.
Building is busily underway, practically everywhere on the island, residential developments are in full swing, promotions for new homes are selling well and many hotels are refurbishing or renovating.
Lots of commotion, excitement and expectation for the upcoming season.
Undoubtedly marked by the opening of UNVRS, Yann Pissenem´s brainchild, on the premises of the historic KU/Privilege in Sant Rafel.
In addition a number of new restaurant and venue openings are in the pipeline, promising more fun and diversity.
Overall sentiment is mostly optimistic about another good season ahead of us.
Lets see how it all rolls out!
Stay tuned and stay safe!
Whats happening?
AX PARTNERS BUYS SIR JOAN IBIZA
AX Partners Expands Presence in Ibiza with Acquisition of Sir Joan Hotel
AX Partners, a private equity real estate investment manager based in Barcelona and Luxembourg, continues to strengthen its foothold in Ibiza’s luxury hospitality sector. The firm has acquired the prestigious Sir Joan hotel in a transaction valued at €28 million, covering both the purchase and its planned revaluation.
As part of this strategic investment, AX Partners will transform the property into the first NH Collection Hotels & Resorts establishment in the Balearic Islands, reinforcing its commitment to developing premium, high-end hospitality assets.
“This acquisition aligns with our investment strategy of preserving and enhancing hotel properties in prime locations,” stated the company. The redevelopment plan includes a capital expenditure investment to renovate and upgrade the hotel to NH Collection’s exacting standards while maintaining its distinctive character. Once completed, the newly branded NH Collection Marina Ibiza will be a five-star luxury destination.
Aleix Recasens, founding partner of AX Partners, emphasized the strategic importance of the acquisition: “We acquired this hotel with the goal of optimizing its performance through a stronger operational framework. This marks an exciting milestone as the first NH Collection property in the Balearic Islands.”
Originally opened in 2017, Sir Joan has welcomed a discerning clientele from both national and international markets. Its prime location, overlooking Ibiza’s port and historic old town, combined with the expertise of AX Partners and Minor Hotels, is expected to solidify its position in the island’s luxury hospitality landscape.
ushuaïa tower rebrands name to the unexpected
Palladium Hotel Group Unveils Brand Evolution: Ushuaïa Tower Becomes The Unexpected Ibiza Hotel
Visitors to Platja d’en Bossa have noticed changes to the façade of Ushuaïa Tower this winter, sparking curiosity and speculation—especially after a sign in the area teased “coming soon…”. Now, the mystery has been officially unveiled.
Palladium Hotel Group has announced a major brand transformation, marking the evolution of one of its most iconic properties. Since its launch in 2011, Ushuaïa Ibiza Beach Hotel has set the standard for luxury hospitality and world-class music entertainment. Now, after more than a decade of success, the group is taking the brand to the next level.
In April 2024, Palladium Hotel Group introduced The Unexpected Hotels, a sophisticated new brand designed to elevate the guest experience even further. This transformation will take place gradually, culminating in the full renovation of The Ushuaïa Tower in 2025, when it will officially be rebranded as The Unexpected Ibiza Hotel.
Beginning this season, the hotel will continue to captivate guests—both loyal visitors and newcomers—with its signature blend of luxury accommodations, premium dining, and immersive entertainment. The two distinct spaces will now be:
- The Unexpected Ibiza Hotel – a newly renovated luxury hotel with 181 rooms and suites
- Ushuaïa Ibiza Beach Hotel – offering 234 rooms and suites
This rebranding is part of Palladium Hotel Group’s broader global expansion strategy. Alongside the transformation in Ibiza, the company is making its mark in the United Arab Emirates with the upcoming The Unexpected Al Marjan Island Hotel & Residences. This ambitious project, developed in partnership with Al Marjan and Almal Real Estate Development, signals the group’s entry into the ultra-luxury market in the region.
With these exciting changes, Palladium Hotel Group continues to redefine luxury hospitality, blending sophistication, entertainment, and innovation to create unforgettable experiences.
OD TALAMANCA SEES A CHANGE IN OWNERSHIP
OD International Hotels Sells OD Talamanca, Retains Long-Term Management
OD International Hotels has finalized the sale of OD Talamanca, a five-star, 117-room hotel located in Ibiza’s exclusive Talamanca Bay.
Despite selling its stake in the property, OD International Hotels will continue to manage the hotel under the Ocean Drive brand through a 25-year management contract. The acquisition was made by a group of private investors who have entrusted the continued operation of the hotel to the OD Hotels group.
The transaction was facilitated by CBRE, a leading real estate consultancy firm. Jorge Ruiz, Director of Hotels for Iberia at CBRE, highlighted the deal as a testament to the strength of the hospitality investment market. “This operation reflects the growing attractiveness of the hotel sector, which is drawing significant investor interest due to record-breaking tourism numbers and strong operational performance. The luxury segment, in particular, remains a focal point due to its resilience and premium positioning in an increasingly polarized market.”
According to CBRE data, the hospitality sector has led investment activity in Spain between 2017 and 2024, accumulating €24 billion—the highest among all real estate asset classes. Looking ahead, the sector is expected to account for 20%-25% of total investment in 2024, surpassing the European average of 10%-15%.
With Ibiza continuing to thrive as a global luxury destination, the sale and continued management of OD Talamanca position OD International Hotels for long-term success in the high-end hospitality market.
MARINA IBIZA WILL NOT RENEW LIO´S LEASE
Trilantic Capital Faces Setbacks with Lío Restaurants in Ibiza and Dubai
Trilantic Capital Partners has encountered a series of challenges as it loses key locations for its Lío restaurant-show concept in Ibiza and Dubai. The investment fund—formerly the owner of Grupo Pachá and still the operator of the Lío brand—has seen its lease in Marina Ibiza come to an end, marking the loss of one of its flagship venues.
Adding to the setback, Five Holdings, a major hospitality group, has decided not to proceed with plans for a Lío restaurant in Dubai. The project, initially set to launch near one of Five Holdings’ luxury hotels, has now been scrapped.
A Difficult Period for Trilantic
These developments follow Trilantic’s recent efforts to exit its Lío venue in Palma de Mallorca, reportedly due to underwhelming financial performance. With the Ibiza lease officially terminating, the future of the brand in the Balearic Islands and beyond remains uncertain.
According to industry sources, the news—first reported by Voz de Ibiza—confirms that Marina Ibiza will not renew Lío’s lease which ends this season . This decision underscores the increasing challenges Trilantic faces in maintaining its presence in key luxury markets.
With its expanding footprint now in question, Trilantic’s next moves will be closely watched as it navigates the evolving hospitality landscape.
THE PARADOR OF IBIZA OPENING DELAYED
Opening of Ibiza’s Long-Awaited Parador Delayed
The much-anticipated Parador de Ibiza is now expected to open toward the end of the year, according to Raquel Sánchez, president of Paradores, in an interview with Europa Press. This update contrasts with earlier optimism from Ibiza’s mayor, Rafa Triguero, who had previously suggested the emblematic hotel could be ready before the main tourist season.
At the FITUR tourism fair, the Ibiza City Council had expressed hopes for an opening as early as April or June 2024, which would have aligned with the 25th anniversary of Ibiza’s designation as a UNESCO World Heritage Site. However, the timeline has once again shifted due to unexpected infrastructure issues.
Infrastructure Challenges Behind the Delay
The latest postponement is linked to an underground water tank, built over 20 years ago by the Consell, which now requires urgent repairs estimated at €200,000. The delay in these works has impacted the Parador’s launch, as confirmed by Ibiza’s Town Hall.
According to Jordi Grivé, deputy mayor of Vila, inspections revealed that the municipal water service is insufficient to supply a hotel of this scale. “You can’t simply restart a facility that has been inactive for 20 years,” Grivé explained, emphasizing the necessity of additional work before the Parador can become operational.
A Project Two Decades in the Making
Managed by Turespaña, under the Ministry of Industry and Tourism, the Parador has faced repeated setbacks. In June 2024, after a decade, the long-standing construction cranes were finally removed, sparking hopes for an imminent opening—expectations that have now been tempered by the latest developments.
Once completed, the 99th Parador in Spain will feature 66 rooms, including suites, and will allow visitors to explore archaeological remains discovered during its prolonged construction.
Despite the delays, the Parador de Ibiza remains a landmark project, blending luxury hospitality with cultural heritage, and its eventual opening is set to become a significant milestone for the island.
The project required a total investment of 27.4 million euros, allocated to the rehabilitation and refurbishment of the historic building of the Ibiza Castle. The works have respected the heritage value of the building, ensuring the conservation of its structure and historical elements, while adapting it to the modern needs of the hotel sector.
the 2025 local budgets HAVE beEN approved
Ibiza Municipal Budgets 2025
| Town Hall | 2025 Total (€) | % Change | 2024 Total (€) | % Change | 2023 Total (€) |
|---|---|---|---|---|---|
| Ibiza* | 96,315,404 | 10% | 87,650,000 | 14% | 76,750,000 |
| Santa Eulalia | 61,739,385 | 10% | 56,000,000 | 6% | 52,897,827 |
| Sant Josep | 54,778,525 | 10% | 49,960,000 | 4% | 47,922,789 |
| Sant Antoni | 50,732,751 | 36% | 37,258,646 | 24% | 29,961,700 |
| Sant Joan | 15,135,000 | 18% | 12,875,000 | 17% | 11,050,000 |
*Proforma
whats is this.. increasing taxes on home purchases for non eu citizens?
Spain’s Proposed Property Tax for Non-European Buyers: What You Need to Know
Spain’s Prime Minister, Pedro Sánchez, has recently unveiled a proposal that has sent ripples through the real estate market—a potential 100% increase in property purchase taxes for non-European buyers. If enacted, this measure could significantly raise the tax burden on international investors. But how likely is it to become law? What would the impact be? And what does it mean for those looking to invest in Spanish property?
Aiming for Housing Reform
On January 13, 2025, Sánchez announced a series of housing market reforms designed to improve accessibility for Spanish residents. Among these measures are incentives for landlords to prioritize local tenants. However, the most controversial element of the plan is the proposed tax hike, which would effectively double the property transfer tax (Impuesto de Transmisiones Patrimoniales or ITP) for non-European buyers.
Currently, ITP rates vary by region. If this proposal is approved, foreign buyers could face significantly higher taxes. For instance, a British investor purchasing property in Andalucía could see their tax rate jump from 7% to 14%.
Will This Law Pass?
While the proposal has raised concerns, it is far from being finalized. Spain’s political landscape remains fragmented, with Sánchez’s government holding only a narrow parliamentary majority. Given this uncertainty, it is unclear whether the tax increase will gain enough support to become law.
Additionally, Spain’s regional tax structure allows different areas to set their own property tax rates. Some regions actively lower taxes to attract investment in rural areas.
Potential Legal Challenges
Legal experts suggest that the tax increase could face significant legal hurdles, both domestically and at the EU level. Spain has previously been forced to repeal discriminatory tax policies, such as higher inheritance taxes for non-EU residents. If the proposed law is deemed unfair or in violation of EU agreements, it could be challenged or overturned.
What This Means for Buyers
For now, the proposed tax increase is still in its early stages, and its future remains uncertain. However, the announcement has already introduced a degree of unpredictability into the market. If you are considering buying property in Spain—particularly in sought-after locations like Ibiza—it is essential to seek professional advice to navigate potential changes.
pacha releases 3q figures
Pacha YTD Q3 2024 Results
| Pacha Club | Value |
|---|---|
| No. of Parties | 151 |
| Avg. Revenue per Party (€ ‘000) | 439 |
| No. of Guests | 487,070 |
| Avg. Guests per Party | 3,226 |
| Avg. Spend per Guest (€) | 136 |
| Pacha Group | Q3 2024 (€ ‘000) | Q3 2023 (€ ‘000) | YTD SEP 2024 (€ ‘000) | YTD SEP 2023 (€ ‘000) |
|---|---|---|---|---|
| Total Revenue | 64,345 | 58,135 | 101,366 | 89,020 |
| Rooms Revenue | 7,026 | 7,534 | 10,731 | 11,608 |
| EATertainment Revenue | 50,032 | 42,643 | 77,095 | 64,007 |
| F&B Revenue | 3,696 | 4,588 | 6,308 | 7,062 |
| Other Revenue | 3,599 | 3,368 | 7,270 | 6,449 |
| EBITDA | 28,204 | 26,085 | 38,375 | 34,577 |
2024 saw similar numbers to 2023
2024 Season ends on a simlar note to 2023
2024 has been a lumpy season with a few false starts and uncertainties as the season evolved.In the end, the numbers of tourists and spend saw similar numbers to 2023.
Hotels regained market share on higher RevPAR, more nghts and shorter stays
Listed offered home prices continue to move up
Residential Home Prices
Listed offered prices across all price points continue to rise steadily and are reaching all time highs for the average market price.
Demand is becoming more selective but scarcity is still a large factor behind these increases. We expect to see some consolidation in real prices going forward.
Home sales start to pick up
Home sales are down again.
As expected, home sales continue to fall for the second year running.
Some signs in recent months that we may be bottoming out, but still early days.
We are cautious going into 2025.