So, the 2023 season closed with better numbers than ever! More visitors, more nights and more spend. Here we review the Ibiza hotel, hospitality and real estate news
It has been busy indeed and the season, while lumpy in the middle, was strong at the opening and strong at the close.
But the beat goes on! The off season consolidating as a cool time to be on the island with loads of events and so much still going on. Much to the delight of the locals where we can enjoy the island mostly to ourselves.
In the backstage, many exciting things are brewing with some serious money being put down on the table.
Ibiza is still attracting important amounts of investment with multiple developments taking place. The huge upgrades to new hotels mostly in the luxury segment as well as a spate of new venues being built in the pipeline.
We expect to see prices hold for a short while, but the feeling is that we may see the beginning of another leg up in the making. Perhaps initiating in late 2024, as rates come down, confidence ticks up and buyers come back to the board in bulk.
Public /Private initiatives must start to surface and address the serious challenges ahead.
It is of upmost importance and essential that we are able to anticipate these developments with real effective solutions to the islands housing needs and address much needed major upgrades in infrastructure. If not sustainability issues will come into play.
What happening in Ibiza these days ?
Hotels- Another big renovation project in the San Antonio neighborhood
The ongoing transformation of the hotel landscape in Sant Antoni Bay in Ibiza is progressing at a rapid pace.
This metamorphosis, which commenced several years ago with notable developments like the OKU and TRS Ibiza in Cala Gració. Both esteemed five-star establishments. Now is set to continue with a project of considerable magnitude in the same locale. The re imagining of the current Stella Maris hotel into a five-star luxury retreat by 2026.
Situated within a sprawling 76,000 square meter, the Stella Maris is already undergoing comprehensive renovations.
The initial phase of the project has commenced, focusing on infrastructural improvements for the plot and refurbishing a complex building to create Madunia—a Bengali term meaning “motherland.”
The establishment aims to attract both internal hotel guests and external diners. Renowned Dutch chef Meet Ivan, specializing in fusion cuisine, will helm the culinary experience.
Next in line is the construction of seven villas in the northern region of the property. They will providing sunset views opposite Cala Gració, positioned near thehostal La Torre.
These villas, comprising 54 beds, will be integrated into the hotel’s accommodations. These sanctioned under the increased volume allowances outlined in the regional tourism regulations for hotel refurbishments.
The hotel will undergo a significant transformation, shedding its current family tourism-oriented identity to emerge in 2026 as a prestigious five-star establishment.
Originally established in the 1970s, the hotel underwent an elevation in status upon acquisition by the Dutch tourism group Corendon.
Earlier this year, Stella Maris became wholly owned by Bas Rasker, a seasoned entrepreneur with diverse interests across multiple sectors.
The hotel’s layout—comprising 320 rooms in separate buildings accessible via surrounding streets, open for use by individual property owners within the complex
The property will manage the hotel directly post-reformation.
With a redefined identity and market focus, it aims to appeal to a discerning clientele distinct from the present family-oriented holiday demographic that will occupy its rooms for the final time next season numerous details are yet to be finalized, but the future establishment is projected to eschew an all-inclusive model, boasting multiple themed restaurants catering to both hotel residents and external guests, alongside several enticing swimming pools.
Hospitality News – Pacha sold to Five Holding of Dubai
The Dubai based FIVE Holdings led by CEO Kabir Mulchandani has closed out the acquisition of the Pacha Group from a consortium led by the previous owners, Trilantic Capital Partners. The price tag was €303 million and is delivered debt free.
According to press interviews the Five Group looks to preserve the essence of the Pacha Nightclub while improving areas and experience such as the VIP areas, sound systems and deeper interaction with its client base.
By 2025, the Destino hotel will be branded as FIVE IBIZA and bought into line with the other Hotels in the group
Emphasis will be made on maximizing the brand and its presence on social media with the intention of creating a strong sense of community.
Sounds like an exciting new breath of life into the Pacha ecosystem and these guys are in the business! Let’s see how it all pans out,
For the moment, Trilantic will retain ownership of the restaurant club brand Lío, known for its cabaret shows and fine dining experiences.
Investment News- A New Development on the Golden Mile of Ibiza
Nusret Gökçe better known as Salt Bae is opening a restaurant in Ibiza. The eponymous restaurateur backed by the Turkish Dogus Group has announced in the media an ambitious development on the golden mile in Ibiza town.
The ground has broken and construction is underway. The project includes 4 restaurants, 51 apartments parking for 80 cars and expected to be ready in 2025 with an estimated Gross Development Value of €100 million
Construction well underway as the iconic Teatro Pereyra prepares for its comeback!
The infamous Teatro Pereyra is undergoing a mayor refurbishment which is due to finish by mid 2024 in time for the season.
The Grupo Sirenis and the Grupo Paladium are the co owners of the property. It will open under the artistic baton of the musician Nacho Cano, with the ambition to a create pole for attracting and developing artistic talent with a primarily focused on live music with innovative proposals that will generate opportunities for local artists.
The biggest challenge, will be to adapt the venue that was born as a theater-circus at the end of the 19th century. Blend into the artistic and scenic trends of the 21st century, while still maintaining a diversity of activities and maintain its historic DNA. It the first major cultural and recreational facility that existed in the city of Ibiza.
Hospitality News – So, now that Pacha has been sold, what ‘s happening with Lio?
Arguably the most profitable cabaret /restaurant in the world. Lio was left out of the purchase of Pacha by the Five Holding group, and still remains in the hands of the investment funds led by Trilantic.
No doubt a valuable asset that generates significant revenues and an impressive operating margin possibly in one of the best locations in the world. The caveat being the lease on the venue ends in 2025 and will very likely have to compete with other players at a significantly higher lease cost.
Presumably Trilantic would be till trying to sell the asset which includes Lio Mykonos, Lio London, Lio Dubai and as well as pipeline LOI deal. We would expect other groups to be preparing bids for the concession. Stay tuned !
Hotel News – Los Felice a new addition to the Concept Hotels Portfolio
Another exciting addition the the Concept Hotels Group portfolio. Los Felices with 113 keys will evoke a Palm Springs 1970’s meets Ibiza 20’s style.
Fashion will be the de facto theme essence and the Les Flerus boutique is an inspiration by will be run by Maria Bernad, whom together with Christophe Ledoux and the Lexa Collective will curate the fashion runways. The club space will be run by the Silencio Group of Paris.
A fun addition to the island no doubt to be seen and to see!
Blue Marlin opening in London
The notorious Ibiza beach club Blue Marlin has opened a club the Mondrian Hotel. The London club will operate as a relaxed place to work and dine by day. The venue will launch parties with DJ sets in the evening, with a touch of Ibiza’s famous nightlife. In the restaurant will be a fusion of Mediterranean and Asian cuisine. The emphasis will be on seafood and cocktails. In addition there is also a rooftop pool, under lights on a wraparound terrace, with views across Liverpool Street. Spanning three floors, Blue Marlin Ibiza London will be a private members’ club with a rooftop pool and terrace with skyline views, a sushi bar, lounge space, gym, spa, night-club and co-working space for the ultimate spot to work and play.
The club promises to be an oasis of creativity and relaxation, bringing the unique and ultimately iconic vibe of an Ibiza vacation right to the heart of the city of London. It is the first foray into London and its fourth site, with locations in Ibiza, Gran Canaria, the United Arab Emirates, and Mexico.
Lets check some of the recent figures for the real estate market
The Ibiza real estate market prices are at all time highs. The market is beginning to show some signs of a slowdown with residential sales falling. A very strong season adds to the economic well being of the island. Property prices will start to consolidate.
A few words about politics…
The center right party PP (Partido Popular) obtained a majority in all the Ibiza municipal elections in May this year. As did the insular government, the Consell d’ Eivissa and the autonomous government in Palma.
This has strongly reinforced the capacity to execute their program with little hindrance and hopefully address some of the pressing issues the island has. No excuses this time round and there is sufficient gunpowder in the budgets.
The general election July finally paved the way to a socialist (PSOE) led coalition government. The the center right party, the PP, failed to obtain sufficient majority in the first round. Ibiza and the autonomous Balearic government are governed by the PP. This possibly making it a little cumbersome to influence the central government. Still, nonetheless have enough power to instigate necessary solution to addressing issues that require urgent solutions
Budgets for next year are being approved at the moment. All are seeing increases and there are funds available to work on necessary solutions. Lets hope that this money is put to good use. While the challenges are there, we should start to see some improvements in areas that most require it most. Those being infrastructure and housing.
Keep your eye on…
Something has got to start moving around these venues at some point
Ibiza in the press
