Converting a building into a hotel: feasibility and change of use

Aerial render of the Smy Costa del Sol Hotel in Torremolinos (Málaga), with circular pool and palm trees, by Klic Arquitectos

Buying an office building, a residential block or commercial premises and converting it into a hotel is one of the deals with the most potential on the Costa del Sol today. But success does not depend on the property alone: it depends on planning feasibility and the change of use. This is what you need to check before you sign.

First things first: does the building allow hotel use?

Before anything else, you need to verify whether the planning framework (the PGOU – the municipal general development plan – or local by-law) permits hotel use on that plot and in that building. Not all land and not all properties allow it, and a change of use may impose requirements for accessibility, evacuation, parking spaces or amenities that the current building does not meet. Checking this is step zero of any deal.

Technical due diligence before buying

A technical due diligence tells you what can really be done with the building: structural condition, building services, regulatory compliance, buildable-area limits and the approximate cost of adapting it. It is the tool that stops you buying a problem. Many deals that look like a bargain stop being one once the real cost of the renovation and of bringing the building up to code is added.

From change of use to design

Once feasibility is confirmed, the change-of-use project organises the hotel programme (number of keys, communal areas, services) within what the building and the regulations allow. This is where much of the profitability is decided: how many rooms fit without compromising quality, how access and evacuation are resolved, and what investment each scenario requires.

How we approach it at Klic Arquitectos

We support investors from before the purchase: feasibility study and technical due diligence, followed by design and construction supervision on fixed fees. The aim is for you to make the purchase decision with the numbers and the risks on the table, not afterwards.

Frequently asked questions

What is a change of use to hotel use?

It is the authorisation to use a building that currently has another use (offices, residential, commercial) as a hotel. It requires the planning framework to allow it and the building to meet the technical and regulatory requirements of the new use.

Can I convert any building into a hotel?

No. It depends on hotel use being permitted on that plot and on whether the property can be adapted to meet accessibility, evacuation and other requirements. A technical due diligence clarifies this before you buy.

When is the best time to carry out the due diligence?

Before you sign the purchase. That is when the technical information is most valuable, because it can change the price or advise against the deal altogether.

Thinking of converting a building into a hotel?

At Klic Arquitectos we assess feasibility and design hotel change-of-use projects on the Costa del Sol. Tell us about it in an initial, no-obligation call.

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Klic Arquitectos interviewed by DecoMarbella

Discover more about Klic Arquitectos

Juan Goñi and Ruth Buján, founders of Klic Arquitectos, talk about their project and their vision of architecture in this interview published in the specialized magazine DecoMarbella.

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