Hotel for sale in Santa Cruz de Tenerife, Tenerife

A unique opportunity! The total return on the business is currently above 20% even before developing the adjacent plot, which makes it highly attractive. Located in the heart of Santa Cruz de Tenerife, this charming historic tourist establishment comprises 22 units and a historic property to be fully renovated, where 14 additional units can be built within 350 meters, reaching a total of 36 units. Among its main highlights is its excellent location, just a few meters from the rest of the city’s most important hotels and from the main cultural, commercial, and gastronomic points of interest in the heart of the old town. Carefully preserved, the property combines traditional architectural character with modern comfort, offering an authentic experience for both domestic and international visitors, with original details such as high ceilings, traditional balconies, and noble materials. Many of the units also have a kitchen and a dining area for added comfort.

Soundproofing of the building’s doors and windows has just been completed, increasing comfort and making these the most comfortable and spacious lodging units in the entire city. It has 4 rooms that need full renovation.

It includes a premises with furniture similar to an old 1930s pharmacy display, which is ideal for a reception, a wine bar, or both, since, being on a corner, it draws the attention of tourists and pedestrians, making it an excellent draw for the establishment.

It is currently operated in the vacation rental housing segment, but it is easily convertible, as it has a valid major construction license for conversion to tourism operations.

1. It is excellently located, so demand is consistent, with an 80% annual occupancy rate. In addition to the appeal of being a protected historic building, it is in the old town but also just a few meters from Plaza de España, the city’s main focal point, making it attractive for business trips and for tourists.

2. In Santa Cruz, the vast majority of cultural and festive events take place, including concerts that attract thousands of people, and it is relatively close to the property—making it an ideal place to stay and enjoy them, such as the Santa Cruz Carnival, held over 10 days and reaching peaks of 400,000 people celebrating in the city, making them the most important in the world after those in Rio de Janeiro. This translates into an increase equivalent to 20% of annual turnover, simply due to its location.

3. The property has strong current and future potential for appreciation. In the last year, Santa Cruz has been the Spanish city with the highest appreciation. As this is a prime property with lots of natural light and ideally located, its appreciation is above the city average, and it also benefits from the current renovation of the old town.

This property represents a strategic opportunity for investors seeking a unique asset with a clear track record of value growth in an established tourist destination.