Spain’s Palladium Hotel Group has announced a major investment in upgrading its hospitality offerings in Playa d’en Bossa, along the coast of Ibiza.
Three new projects, to be completed by the end of 2026, will see a transformation of key properties in the destination, representing an investment of more than EUR90 million by Palladium and partners. They will play their part in a more general upgrading of key Spanish tourist destinations, as many move upmarket with hotels becoming more luxurious.
Ibiza favours quality over quantity
A shift to quality over quantity comes as authorities in Ibiza express concern about overtourism, an issue rising up the agenda in several Spanish holiday destinations. In Ibiza, 2025 has seen the imposition of restrictions on the number of cars allowed to be rented, as steps are taken to encourage more sustainable tourism. Ibiza attracts more than 3 million tourists annually, putting pressure on a destination with just 160,000 residents.
Palladium has already set the scene with the completion of a refurbishment at its Unexpected Ibiza Hotel. It opened in April 2025 following a major transformation, offering upscale hospitality for guests staying in its 181 refurbished suites and rooms. The hotel has also seen the European launch for the Hell’s Kitchen restaurant brand, developed by Gordon Ramsay. And for guests, the hotel’s lineup of top entertainment is unmatched.
Another major destination has been created by Grupo Empresas Matutes, the parent company of Palladium Hotel Group, at Ibiza Gallery. With 4,800 sq metres of space, this destination combines high end fashion with luxury brands, art and a great dining experience, in a smart local mall.
The third part of the Palladium group’s major investment will see the creation of the Site Hotel Ibiza. This will follow a refurbishment of the property known for many years as the Hard Rock Ibiza. While there will be change of name, the hotel will still be delivering a place to stay that draws on the island’s vibrant energy, combining art, entertainment and a gastronomic experience for guests.
Elsewhere in Ibiza, further investment is broadening the luxury and upscale offering for visitors to the island. The famous Paradores network will see its first property in the Balearics launch towards the end of 2025. A 66 room hotel is being created within Almudaina Castle, an 18th century landmark in Ibiza town.
Hotel transformations across the island
2026 will also see the relaunch of another Ibiza hotel, the former Beach Club Hotel Portinatx. The 243 room asset is being remodelled, and will reopen for the summer season as Nomade Ibiza. Also in development is Jayasom Ibiza, a wellness oriented resort just outside Ibiza town. It is being created by converting and extending a 300 year old farm estate, a project that will create a 150 room five star resort.
Also reported to be coming to Ibiza is the Virgin Hotels brand. As of mid 2025, details are scarce, but what is clear is that the Virgin brand is keen to add to its presence in Spain, building on its 26 room Virgin Limited Edition in Majorca. Virgin cruise ships already regularly anchor in Ibiza, and the group could potentially offer guests a cruise and stay option, with a hotel on the island.
