Ibiza tourism hospitality hotels 2024
With the 2024 Ibiza season drawing to a close, now is the perfect time to look back on what has been a strangely dynamic season—one that, despite its apparent unpredictability, is likely to match the remarkable success of 2023.
Locals and business owners alike have frequently described this as a “strange summer,” reflecting a season shaped by contrasting trends. On one end, a more selective, high-demand market favoured shorter, more packed stays. On the other, longer stays with a lower daily spend were prominent, while the mid-range market saw a noticeable decline.
Top-tier clubs, restaurants, and hotels fared well, successfully raising prices to meet a premium demand. However, venues unable to deliver a high standard for the price struggled. This year, the market clearly shifted further upscale: four- and five-star accommodations saw steady bookings at increased rates, while lower-end offerings remained flat. Across the board, consumer expectations have become more discerning—simply put, “not everything goes.”
Investor interest in Ibiza’s high-end hospitality and leisure sector remains strong, with new upscale residential developments progressing well and selling steadily. Although residential sales have fallen over the past year, there are signs of stabilisation as prices across segments reach all-time highs. There’s little indication that prices will soften significantly, and they are likely to consolidate at current levels for some time.
Housing availability, particularly at more affordable levels, remains a pressing issue on the island, exacerbated by Ibiza’s unique circumstances.
However, local institutions are beginning to address this challenge, with new projects and initiatives aimed at relieving pressure in the lower market segments. We expect minimal impact on the mid-to-upper segments.
As Ibiza moves into autumn and winter, it’s an interesting moment for the island’s future direction. The trend of recent years continues to solidify Ibiza’s reputation as a premium destination, with high prices balanced by an exceptional variety of quality leisure and hospitality offerings.
Watch for new developments across all sectors as next season approaches—Ibiza’s evolution shows no signs of slowing.
Hotels News – Hotel Destino Ibiza to undergo refurbishment and rebrand as Destino Five Ibiza
Ibiza tourism hospitality hotels
On the 30th of September 2024, Destino Pacha Hotel Ibiza will close its doors for a complete transformation, reopening in 2025 as the luxurious Destino Five Ibiza.
This reimagined five-star resort will bring fresh, vibrant energy while staying true to the core values of love, joy, connection, and inclusivity that have defined The Pacha Group for decades.
The extensive renovation will elevate the hotel’s interiors and exteriors, offering a sophisticated, contemporary design that enhances every aspect of dining, leisure, and accommodation.
Destino Five Ibiza will feature redesigned rooms, suites, and private villas, all crafted to deliver a dynamic and upscale experience. A highlight of the new rooms will be private terraces with outdoor bathtubs, perfect for a luxurious Ibizan escape, along with state-of-the-art minibars for added convenience.
Guests can also look forward to a new outdoor gym, integrating wellness with Ibiza’s breathtaking natural surroundings. The resort will embrace a blend of sustainable luxury, creative spaces, and upgraded amenities, with the goal of achieving LEED Platinum certification for eco-friendly practices.
Music lovers will be thrilled by the return of Marco Carola’s iconic Music On residency, which has become a staple of Ibiza’s legendary nightlife. With performances from world-renowned artists like Black Coffee, Pawsa, BLOND:ISH, and Paco Osuna, his 2025 residency will undoubtedly make Destino Five Ibiza a top destination for house and techno enthusiasts.
As a new era begins, Destino Five Ibiza promises to deliver an unforgettable fusion of celebration, wellness, and elevated experiences.
Real Estate News – New initiative for proposed ¨Safe Rental Program¨ in Ibiza
Ibiza tourism hospitality hotels
The Balearic Islands, is proactively addressing its long-standing housing issues. President Marga Prohens announced the launch of the Secure Rental Program (Lloguer Segur) during a recent General Policy Debate, emphasizing the government’s commitment to providing affordable housing for residents.
This innovative initiative is set to roll out approximately 2,000 to 3,000 rental homes within the year, specifically for individuals who have resided in the Balearic Islands for at least five years.
The program aims to offer these properties at rates up to 30% below the current market prices. Monthly rental ceilings are established at €1,050 for properties in Mallorca and Menorca, and €1,470 for those in Ibiza and Formentera.
To encourage participation from small private homeowners, the government will ensure that they receive guaranteed rental payments and will return the properties in their original condition. The Secure Rental Program includes a seven-year lease agreement and provides flexible payment options, such as monthly payments or advance payments by the government for the entire lease duration, subject to budget availability.
Homeowners can also benefit from significant tax deductions, with a 70% reduction available on their income tax returns.
In terms of pricing, the government will determine a maximum rental amount validated by the College of Real Estate Agents of the Balearic Islands (COAPI), ensuring alignment with market realities, the price will be paid to the owners and will be adapted to the reality of each island: up to 1,500 euros in Mallorca and Menorca and up to 2,100 in Ibiza and Formentera.
The government will subsidize 30% of the rental price, allowing tenants to pay a reduced amount.
For instance, if the assessed rent is €850, the tenant would only pay €595 after the subsidy is applied.
The total estimated cost of the program is projected at €12 million annually.
Eligibility criteria for homeowners include the requirement that properties have been empty for at least six months and are in good condition, with necessary utilities connected and a valid energy efficiency certificate.
Only small property owners can participate; those classified as large holders are excluded.
For tenants, additional requirements include demonstrating a minimum of five years of residency in the Balearic Islands. The homes must serve as their permanent residence, prohibiting subletting or tourist rental.
Income limits for tenants are set at a maximum of 6.5 times the weighted Public Indicator of Multiple Effects Income (IPREM), which currently translates to approximately €60,667 for a single tenant and €68,250 for two.
Overall, the Secure Rental Program reflects a comprehensive approach by the Balearic government to enhance housing access, support local residents, and tackle the challenges posed by a tourism-driven housing market.
Remains to be seen house this will all play out. Small print may be limiting factors, three months down payment, guarantor required, government retains the first three months payment to owners to cover potential damages & reparations. The intentions are there, just the dynamics may not achieve what it really sets out which is to grant easier access to the housing market especially for residents in the lower income brackets which ultimately are the most affected.
Real Estate News – Lemon 84 unit residential development in Talamanca Ibiza
New home development-Marina Botafoch IBIZA by Lemon Promociones
Discover a unique project in Ibiza, comprising 84 extraordinary homes with parking, swimming pool and a magnificent communal garden.
You can choose between two and three bedroom homes with terrace; or duplex penthouses with terrace and solarium, and excellent views.
All this in one of the best areas of the city, next to Marina Botafoch and a few minutes from Talamanca Beach.
We build the home of your dreams in paradise.
This project has a building license number G-18692-2019. The works will begin in the coming months.
Prices from € 698.400 – € 1.374.975
Hospitality News- Pacha Group 2Q 2024
Five Holdings Group publish first semester 2024 figures (p) for the Pacha Group showing robust performance across all subsets.
Pro forma results are all up strongly bar rooms revenue, which is a little softer than 2023.
Pacha Club Q2 2024
| Q2 2024 | |
|---|---|
| No. of Parties | 58 |
| Avg. Rev/Party (€ 000’s) | 407 |
| No. of Guests | 177,608 |
| Avg. Guests/Party | 3,062 |
| Avg. Spend (€) | 133 |
El Hotel Pacha- Q2 2024
| Q2 2024 | |
|---|---|
| No. of Days Open | 91 |
| ADR (€) | 177 |
| Occupancy (%) | 74% |
| RevPAR (€) | 127 |
Destino Ibiza – Q2 2024
| Q2 2024 | |
|---|---|
| No. of Days Open | 72 |
| ADR (€) | 365 |
| Occupancy (%) | 67% |
| RevPAR (€) | 243 |
| No. of Parties | 4 |
| Avg. Rev/Party (€ ‘000) | 615 |
The Pacha Group – Q2 2024 vs Q2 2023 (Pro forma)
| Q2 2024 (€ ‘000) | Q2 2023 (€ ‘000) | |
|---|---|---|
| Total Revenue | 35,220 | 28,626 |
| Rooms Revenue | 3,400 | 3,671 |
| EATertainment Revenue | 26,643 | 20,755 |
| F&B Revenue | 2,509 | 2,285 |
| Other Revenue | 2,668 | 1,916 |
| EBITDA(1) | 12,781 | 10,730 |
Ibiza Social Housing Project – Can Escandell
The current government is studying the possibility of legalising properties that have been fined for illegal construction and have not been able to register these changes into the land registry. The condition is that the fines must have prescribed in three years and a fine must be paid.
The move is a sensible one and hopefully will start to pave the way for recognising the legal impasse that has been prevalent on the island for decades and offer solutions for owners that want to regularise their properties.
This will also help improve investor confidence and more transparency and allow for a significant amount of houses to become fully and legally registered and facilitate transactions to flow easier.
This is good for the property market.
Hospitality News – UNVRS
[UNVRS] is set to redefine the nightlife experience as the world’s first Hyperclub, an innovative concept from the creative genius behind Ibiza’s legendary venues Ushuaïa and Hï Ibiza.
This groundbreaking project, led by Yann Pissenem, Founder & CEO of The Night League, blends the luxury and impeccable service of a high-end nightclub with the scale and spectacle of arena events.
[UNVRS] will introduce a revolutionary fusion of cutting-edge technology, awe-inspiring architecture, and hyper-customized production, creating a dynamic and immersive experience like no other. Opening in summer 2025, [UNVRS] promises to usher in the next era of nightlife, where the future of entertainment and human connection converge.
The unveiling of [UNVRS] made headlines worldwide following a viral UFO sighting in Ibiza, later revealed as an ingenious stunt by Pissenem.
Global superstar Will Smith played a pivotal role in the dramatic reveal, starring in a video where he uncovered the UFO’s true identity—an ambitious drone flown from the rooftop of the new venue.
The stunt captivated the world, garnering over 52 million views and sparking an international buzz as stars like David Guetta, Maya Jama, and Alec Monopoly shared the excitement. “This campaign has been truly out of this world,” said Pissenem, adding that this is just the beginning of an exciting journey. As anticipation builds for its launch, [UNVRS] is poised to elevate Ibiza’s nightlife to unprecedented heights, setting a new global standard for entertainment.
Residential News – RTV buys a “holiday home” complex in Ibiza for €14.5M
Vista Alegre Suites captures the true essence of Ibiza with its aesthetic design and exclusive atmosphere. This private complex consists of 25 unique suites, each offering spectacular sea views, including vistas of Formentera. Located in a highly privileged spot, it allows guests to fully embrace the beauty of summer in a tranquil and luxurious setting, far from the busy tourist areas.
Nestled in the serene south of the island near Es Cubells and just five minutes from San Josep, the development offers convenient access to Ibiza’s most stunning beaches, such as Cala Jondal, Sa Caleta, and Cala d’Hort. The urbanization boasts exceptional amenities, including private gardens, a swimming pool, a fitness room, a chill-out area, and private sundecks. With high-quality finishes, aerothermal systems, and ample parking, Vista Alegre Suites presents an unmatched lifestyle in a truly natural environment.
For more information click the link
Hospitality News – Wait, What? KU Revival?
According to the press, a prominent development group is reviving the iconic KU Ibiza brand and actively scouting potential locations on the island for a summer 2025 debut. KU Ibiza, which originally defined Ibiza’s golden age of nightlife from 1978 to 1990 in the legendary venue that later became Privilege, remains one of the most celebrated names in club history.
Leading this ambitious project is nightlife entrepreneur Santiago Llorens, who has engaged in discussions with major hotel groups on the island, generating interest from several companies in launching KU Ibiza as a franchise. While the vision is to bring KU Ibiza back as a large-scale nightclub if an ideal space is secured, the brand’s revival may also take the form of a chic restaurant or beach club, capturing the spirit of its illustrious past with a modern twist.
KU Ibiza, founded in 1978 by three Basque entrepreneurs in San Rafael, holds a rich history, including the famed 1987 performance of Montserrat Caballé and Freddie Mercury singing the Barcelona Olympic anthem. While the primary search for the venue is focused on Ibiza, Llorens is also in talks with promoters from other destinations such as Mallorca, Marbella, Tenerife, and Madrid, looking to expand KU’s influence beyond the island. Currently, KU operates a franchised discotheque in Benidorm, keeping the legendary brand alive as it prepares for a bold return.
Lets check some of the recent figures for the real estate market
- Ibiza Listed prices are at all time highs, across all categories, and all price points
- Residential home sales in Ibiza continue to slow, and transaction closing time lines are widening
- Listed offer inventory, has started to fall slightly, across all price points
- Sharp increase in residential building permits in terms of units
- Demand, for homes in Ibiza more selective and more price sensitive, is still robust
- The residential rentals are at market highs, vacation rentals are easing after several years of record highs
- Ibiza Construction costs remain firm and delivery times are still problematic with prices expected to remain high
- The local government are passing measures to facilitate the possibility of legalising some previously non compliant residential buildings provided certain requirements are met and the payment of a fine
Ibiza in the press
NEXT ISSUE OCTOBER 2024