Restaurant/Bar for sale in Chaparil - Torrecilla - Punta Lara, Nerja, Málaga

Turnkey property – Avalon Hotel & Restaurant, Nerja, Costa de Sol, Spain

Built in 1970, Avalon is a charming boutique hostal and highly regarded restaurant situated in Punta Lara, just west of Nerja on Spain’s Costa del Sol. Perched 70 meters above Playazo Beach, the property offers panoramic views of the Mediterranean Sea and the Almijarra mountains, creating an exceptional setting that draws visitors year-round.

The property comprises six ensuite guest bedrooms, each with its own private terrace overlooking the sea or mountains. In addition, there is a modern 67 m² self-contained apartment - currently lived in by the owners - which provides flexible use. It may serve as private accommodation, be integrated into the restaurant or kitchen, or be converted into a function space for weddings and special events. Guests can also enjoy a panoramic rooftop terrace offering 360-degree views, perfect for sunrise breakfasts, evening drinks or stargazing.

Avalon’s restaurant enjoys a strong reputation locally and internationally, with both indoor and outdoor dining areas. The light-filled restaurant offers 45 covers, enhanced by a cosy fireplace in the cooler months, while the terrace seats a further 50 guests with uninterrupted sea views. The professional kitchen has been designed by a chef to the highest ergonomic standards, ensuring it is both practical and efficient. A welcoming bar area, landscaped gardens, and private parking for 20 cars complete the picture.

Financially, Avalon is a proven business with an approximate annual revenue of €611,000 and a profit margin of around 17 per cent. The restaurant accounts for approximately 75 per cent of revenue, with the hostal contributing the remaining 25 per cent. High occupancy rates are consistently achieved, peaking at 98 per cent during the summer season. Guest satisfaction is reflected in outstanding ratings: 9.3/10 on Booking.com, 4.7/5 on Google, 4.8/5 on TripAdvisor (hotel) and 4.6/5 on TripAdvisor (restaurant).

The property sits on a generous 2,197 m² plot with scope for further development. With permissions allowing up to 900 m² of construction, options include adding a swimming pool, expanding the dining terraces, or creating additional guest rooms. This flexibility offers new owners the opportunity to grow and adapt the business to their vision.

Avalon is offered turnkey, fully licensed, fully legal, fully equipped, furnished, and staffed. Ready for continued success, yet with significant potential to expand. The asking price is €2.77 million.