Beachfront Boutique Hotel Investment Opportunity in Cala Millor, Mallorca

There is something immediately easy to understand about this opportunity. You are in Cala Millor on Mallorca's east coast, the beach is just metres away, and instead of starting with an empty site and years of uncertainty, there is already an existing hotel building here with a tourist licence in place.

The property has 1,223 sqm of constructed area and is planned for redevelopment into a boutique four star wellness hotel with 16 rooms and suites, all designed with sea views and terraces. The architectural drawings are complete, the proposed redevelopment has been confirmed by the authorities according to the supplied project material, and an independent structural assessment found the existing structure sound.

What I particularly like about the concept is that it is not relying on the rooms alone. At ground and leisure level, the plans introduce a beachfront restaurant and café alongside a substantial 516 sqm spa and wellness centre with an indoor swimming pool, sauna and gym. Upstairs, the guest experience continues onto a 160 sqm rooftop with a jacuzzi and bar.

The location does a lot of the work as well. Cala Millor has grown around an almost 2 km sandy beach and already has the restaurants, shops, bars, promenade, cycle paths and watersports that visitors expect from an established Mallorca resort. It means this is not a hospitality concept trying to create a destination from scratch. The destination already exists around it.

From an investment perspective, the property is offered at €2 million as is, with an estimated €1.7 million redevelopment budget, bringing the projected total investment to €3.7 million. The supplied investment case projects annual revenue of approximately €2.1 million to €2.4 million, while the works programme anticipates opening within approximately 6 to 8 months of construction starting. These figures should naturally be considered alongside the full viability report and investor due diligence.

Perhaps the most interesting part, though, is the existing tourist licence. The investment material notes that new tourist accommodation licences in the Balearics are effectively frozen, making the licence already attached to this building an important part of the opportunity.

For a buyer looking at Mallorca hospitality rather than simply another residential investment, this is a fairly clear proposition: an existing beachfront building, a licence already in place, an approved four star concept, completed architectural drawings and a defined redevelopment programme.

Contact us for the complete investor presentation, architectural drawings, structural and viability reports, or to arrange a private viewing.