None of the nearly 900 listed owners, most of whom are foreign nationals, will receive any money back on their investment, after an official valuation set the property’s value at just €48,000 (£42,000). This appraisal amount does not cover even a fraction of the demolition cost, which is estimated at €2.3million (£2million), and will be paid for with public funds. 

The recognisable Y-shaped structure comprises 22 storeys on a 25,300-square-foot plot with a total floor space exceeding 430,500 square feet. Construction began in 1973 as an ambitious hotel project with 741 planned rooms, but the development was abandoned just two years later when it was discovered that the building was being constructed without proper planning permission and on land not designated for such a massive structure.

The developer ran out of funds and reportedly fled the island, leaving the concrete skeleton exactly as it was.

Since then, the building has become a longstanding urban eyesore, linked to repeated safety issues, accidents and persistent complaints over its negative visual impact on the surrounding landscape. In 2016, the owners were required to erect a 13-foot-tall fence around the structure and post signs prohibiting access. In 2019, this was ordered again, along with security cameras and multilingual posters.

Five people have lost their lives after ignoring safety warnings and entering the building, including a 13-year-old girl in December. Incidents occurred when people parachuted from the top of the building or fell into holes. Popular videos of people doing parkour were also recorded in the hotel. Local authorities have stepped up fines to over €500 (£437) for anyone caught trespassing.

Now, according to the announcement published in the Provincial Boletín Oficial (BOP), the forced expropriation has been approved on the grounds of “failure to fulfil the social function of the property”, as the building remains unfinished and lacks the required legal permits. A one-month period has now been opened for the submission of any objections or appeals deemed appropriate.

Demolition work is expected to take place between 2026 and 2027. Such an undertaking is complex because the building sits on a cliff and contains hazardous materials, including asbestos.