Malaga's abandoned Correos building takes major step toward luxury hotel conversion

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Israeli magnate Haim Tsuff’s 28 million euro project nears breakthrough as town hall set to reclassify the site for hotel use

Jesús Hinojosa

Málaga

Monday, 23 February 2026, 12:17

The transformation of Malaga’s derelict former post office into a five-star hotel is expected to take a significant step forward this Tuesday.

Malaga city council is scheduled to initiate the urban planning process to reclassify the building on Avenida de Andalucía, potentially ending 15 years of abandonment.

Israeli magnate Haim Tsuff purchased the building on Avenida de Andalucía for 23.5 million euros at an auction six years ago. His plan was to transform it into a luxury hotel, but the building's classification as a private facility has complicated the project.

On Tuesday, however, the city council is finally planning to initiate the process and approve the urban planning dossier. This would put an end to years of abandonement, marked by the deterioration of facades and the camps of homeless people.

The city council will change the use of the building, but there are still several steps ahead before final approval.

In November 2024, the delegation of the regional ministry of sustainability and environment issued a resolution agreeing with the municipal urban planning department that the intervention does not need to undergo a prior environmental assessment, which would delay the process by one or two more years.

An earlier pronouncement had already stated that it was not necessary not necessary to compensate for the loss of a private-use facility by transferring that designation to other land in the city.

For this possible swap, Tsuff had already bought two plots of land in El Candado and La Granja Suárez, measuring 6,500 and 9,400 square metres respectively, but these will ultimately not be needed.

With that said, if no more obstacles come up along the way, the definitive approval could take place during the course of this year.

There are several issues on which the urban planning technicians had initially expressed their concerns. One of them alluded to the fact that the building should not grow beyond its current plot. Its construction far exceeds what is permitted by urban planning regulations in this area of the city.

This requirement limited the owner's plans to increase the usable floor space needed for the luxury hotel project, which is expected to have close to 200 rooms. To overcome this issue, the owner of the former Correos building has proposed demolishing the southern base of the current structure, which faces Avenida de la Aurora and Calle Cristo de la Expiración.

In its place, a new building would be constructed above two basement levels providing around 100 parking spaces. The new structure would comprise a ground floor plus three additional storeys and would not exceed the height of the existing building, around 14 metres.

According to the developer's studies, the hotel could create around 150 permanent jobs once operational and more than 210 during construction. The project is valued at 28.9 million euros, of which 20.4 million would go towards refurbishing the existing building and 8.5 million towards constructing the new base.

Tsuff's representatives have consistently stated their intention for the hotel to be of the highest international standard, comparable to brands such as Mandarin Oriental Hotel Group, The Ritz-Carlton or Four Seasons Hotels and Resorts. However, the project still depends on clearing the remaining administrative procedures at the city hall, including further sectoral reports, and on the owner reaching an agreement with an investor or hotel operator that will ultimately run the establishment.