Former Torremolinos Melía hotel to convert into residential complex thanks to 250-million-euro budget

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Seville-based company Grupo Abu is behind this project, which turns out to be the "largest in the country in terms of turnover", with more than 350 homes and a buildable area of 40,000 square metres

José Rodríguez Cámara

Torremolinos

Thursday, 16 April 2026, 14:49

Seville-based developer Grupo Abu has announced its intention to undertake in Torremolinos "the largest development in the country at the moment in terms of turnover".

The project, which involves a budget of 250 million euros, concerns the conversion for residential use of the plot of land on Avenida Carlota Alessandri that used to house the Melía Tres Carabelas hotel. This is an attractive plot of land, a stone's throw from La Carihuela and Puerto Marina in Benalmádena.

The project foresees the creation of 353 homes over a buildable area of 40,000 square metres (a plot of 12,688 square metres).

Administrative phase

Municipal sources have said that the planning study for this land is in its final phase, prior to final approval by the local ruling team. The project has received favourable external and internal reports.

At the same time, the corresponding building permit process has started. The step preceding it aims to increase the buildable area and change the classification of the land from hotel to residential.

The initial approval of the zoning study of the plot took place during the local ruling team's meeting in September. It was then published in the official provincial gazette on 27 October 2025 for the public to get the chance to raise objections and share feedback.

The regional government has already givne the green light to the project, which, in turn, formed part of the agreement for the construction of housing in this part of the town centre, which received the support of the town hall in 2023.

Under this agreement, there will be significant financial compensation for the town's coffers, which will receive 15 per cent of the revenue, five points above the minimum required by law.

Grupo Abu plans to build the Magna residential complex, which will consist of different buildings of medium height, "harmoniously integrating it into the surroundings".

With this progress and the commercial announcement of the development, Grupo Abu is closer to bringing back into use a site that has been in a state of abandonment since 2009. Currently, only a small structure standing there indicates a previous attempt to build a five-star hotel, with 22 floors and even a heliport.

The regional government had objections to the establishment and requested modifications. Later, however, the hotel promoters could not afford the construction and abandoned the project.

The residential complex Grupo Abu plans to build will be called Magna. It will consist of different buildings of medium height, "harmoniously integrating them into the surroundings". The project gives priority to common areas, including a swimming pool and green spaces. The aim is to implement energy-efficient materials and processes during the construction.

Projects in Malaga

During the announcement of Magna, the Seville-based company also reported that it plans to launch the construction of more than 750 units in different parts of Spain, at the cost of 6000

As for projects under development or construction, Grupo Abu's portfolio exceeds 1.4 billion euros, with some 2,000 homes currently under construction, which provides more than 4,000 direct and indirect jobs.

In addition to Torremolinos, Abu is developing Las Esclavas in Malaga city, for which the company has commissioned architectural company L35, responsible for the refurbishment of the Santiago Bernabéu, Rome's Termini station, and major developments in Sotogrande. The studio also has commissions across Europe, Latin America and Abu Dhabi.

Grupo Abu is also behind 25 semi-detached units of various other types across five building blocks at different levels in the El Higuerón area between Benalmádena and Torremolinos. This is the Organic project, for the design of which the U8 studio is responsible.