Benidorm Town Council has backed updates to its hotel incentive system in a bid to help local establishments upgrade their services and achieve higher quality categories. Originally created 25 years ago to promote the renovation of the resort’s hotel sector, the planning framework is undergoing its third major revision. The Generalitat’s Department of Environment has recently published a favourable environmental report in the DOGV, marking a key step in updating the rules to match current industry trends.
The scheme could have a widespread impact across Benidorm, which currently has 113 hotels rated between three and five stars, according to Turisme Generalitat data. This includes 50 three-star, 59 four-star, and four five-star hotels, representing around 80 per cent of the 141 registered hotels in the municipality. The planning update does not grant automatic benefits to every establishment, but instead creates the necessary framework for incentives to be applied through future urban planning tools.
Under the updated rules, four-star and higher-rated hotels can still increase their buildability coefficient by up to 40 per cent. However, this extra space must be allocated strictly to specific services and facilities, including lounges, dining rooms, indoor swimming pools, saunas, and indoor sports areas.
The reform also focuses on encouraging establishments to raise their official ratings. Incentives are included for hotels moving from three to four stars, from four to five stars, or to five-star Grand Luxury status. Additionally, the framework aims to encourage the construction of brand-new five-star and five-star Grand Luxury hotels.
First launched in 2001 under former mayor Vicente Perez Devesa, the hotel incentive scheme allowed four and five-star hotels to expand their floor space by 40 per cent without it counting as standard buildability. In return, hotel owners were required to compensate the Town Council through public land transfers or financial payments. The scheme was previously updated in 2015 and 2017.
This third revision separates regulations for existing hotel renovations from brand-new builds or extensions, adjusts room size expansion rules to match modern category requirements, and recalculates the formulas used to determine incentives. Future Internal Reform Plans using this framework will need to include landscape integration studies and adhere to flood risk guidelines where applicable.
Of the seven hotels that initially used the system to expand, the Hotel Deloix was the first and only establishment to complete its required compensation to the Town Council as of 2025, paying 371,426 euro. The remaining six establishments, including the Madeira, Victoria, Flamingo Oasis, Melia Benidorm, Levante Club, and Mediterraneo, were still processing their regularisation. Local government officials confirmed these files remain in progress, while Urban Planning councillor Lourdes Caselles noted that the pending projects are moving forward. Hotel association Hosbec stated that compensation matters are handled directly between individual hotels and the Town Council.
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