EXTENDAM acquires an office building in Malaga
EXTENDAM, alongside Continuum Hotel Services and through a hospitality SME, has acquired a former office building in Malaga. The property will be converted into a 175-room, 3-star ibis Styles hotel, scheduled to open in late 2027.
Converting an office building into a 3-star hotel
The transaction concerns an office building that had become obsolete. It will make way for a 175-room hotel spanning approximately 5,140 m² over eight floors.
The hotel will feature a breakfast room, a bar, an inner courtyard, a rooftop with a swimming pool and a gym. A 35-space car park will complete the offering.
The building permit application was filed in July 2025. Delivery is expected in late 2027.
This acquisition is part of EXTENDAM’s strategy in Spain, which aims to create new hotel supply from existing buildings, with a positioning tailored to the fundamentals of each market.
A location at the heart of La Princesa’s transformation
Close to the seafront and the historic centre
The hotel will be located on Avenida de la Paloma, in the La Princesa district. The seafront is around a fifteen-minute walk away, and the historic centre is roughly fifteen minutes by car.
A neighbourhood undergoing change
Several urban, residential, office and cultural projects are set to gradually reshape this part of Malaga.
Nearby, the Malaga Tree project involves the redevelopment and greening of a large complex, with three residential towers surrounded by a new park.
The San Rafael Industrial regeneration programme plans to redevelop more than 2,000 residential units from 2027. The San Andrés Marina project is set to transform the port area, with a marina and new retail and dining options.
New office and cultural uses are supporting this momentum. The Merlin project includes nearly 10,000 m² of office space, Insur is refurbishing office buildings, and a new CaixaForum of around 10,000 m² has also been announced.
These developments should strengthen the area’s appeal and diversity, bringing residential neighbourhoods, business activity, cultural venues and the seafront closer together.
Malaga, a hotel market driven by demand
Strong demand in Spain
In the first half of 2026, Spanish hotels recorded a 1.8% increase in overnight stays compared with the same period in 2025, driven by both domestic and international guests.
Positive indicators in Malaga
Over the first four months of 2026, Malaga welcomed nearly 543,000 hotel guests, generating more than 1.13 million overnight stays. These figures are up 0.8% and 6.4% respectively year on year.
In May, international overnight stays rose by 8.9%. In June, room occupancy reached 88.3%, almost five points higher than in June 2025 and the highest level of the year. (Source: City of Malaga press release, June 2026)
The destination benefits from highly international demand, and tourism activity extends well beyond the summer months. This supports the need for a structured hotel offering, particularly in the midscale segment.
“Malaga has particularly solid fundamentals, with rising hotel attendance and high occupancy levels. This project allows us to position ourselves in a market we know well, with a large-capacity 3-star product that will complement the existing supply in a neighbourhood undergoing transformation. We are also delighted to continue our collaboration with Continuum Hotel Services on this occasion, a partner with whom we have already developed several projects in Spain.”
Anna Cohen, Fund Manager, EXTENDAM
Past performance is not indicative of future results and is not constant over time.
