Hotel owners and developers in Spain have won a major courtroom victory against the government of the Canary Islands, leading to a payment of EUR485 million in compensation.
Lopesan Hotels & Resorts, a Canary Islands based hotel owner and operator, will be the greatest beneficiary of the payout, receiving EUR300 million alone, according to local media reports. The out of court settlement will end a dispute over hotel development in the islands that has been rumbling on for more than 20 years. Other recipients of payouts include developers Grupo Satocan, Seaside and Dream Palace.
Plans for New Hotels Being Revisited
The compensation relates to changes in construction and zoning regulations, introduced from 2001. These stalled many hotel projects, and reclassified development sites as land that could not be built on. Sites had previously been approved for tourism developments – but the change meant that plans could not proceed, causing financial harm for the developers.
Lopesan submitted 31 of the total of 45 individual appeals against the regulations. An initial claim for a gross EUR843 million was submitted, but reduced in out of court negotiations.
As a result of the decision, more than 20 potential hotel and resort developments will now be reassessed for economic viability. Most of the projects are in the San Bartolomé de Tirajana and Mogán regions of Gran Canaria, and in a number of parts of Fuerteventura.
In the meantime, Lopesan has still been active, working in regions of Spain where developments have been possible. In Madrid, the company is working on the refurbishment of the luxury Hotel Miguel Angel. The 241 room property will relaunch in 2027, following a comprehensive refit. Lopesan partnered with investor Stoneweg Hospitality on the project, which they acquired in 2024 for a reported EUR210 million.
In the north of Germany, Lopesan is working on another refurbishment. IFA Fehmarn Hotel & Ferien-Centrum, a major property with 479 rooms, will relaunch in the second quarter of 2027 following its makeover.
In the Canaries, Lopesan is working up plans for Lopesan Meloneras Family, a 953 room resort on the southern coast. Nearby, a second hotel, Lopesan Meloneras with 533 rooms is also being designed, aiming to support events at the nearby Palacio de Congresos ExpoMeloneras.
Finding the Right Balance on Tourism
Elsewhere, on Tenerife, the hotel pipeline is modest. Macaronesian Hotels & Resorts is planning the 325 room Tenerife Blue Village Hotel in Los Cristianos, while on the north side of the island, Ibis Styles Puerto de la Cruz is under construction and preparing for an autumn 2027 opening. And in the north east of the island, close to Santa Cruz, Zafiro Hotels is planning the 300 room Zafiro Palace Collection Tenerife.
While developers will be welcoming the opening up of development opportunities, the shift is bound to revive tensions around overtourism. The Spanish islands have seen many protests in recent years, with local people expressing concern that their way of life is being compromised by the volume of tourist visitors to their towns and cities.
