Transformative €100 Million Investment Revitalizes Puerto de la Cruz

Puerto de la Cruz, the oldest tourist destination in Tenerife, is experiencing a significant transformation with an investment nearing €100 million aimed at revitalizing its hotel sector.

Major Renovations and New Openings

The city, once celebrated as the birthplace of tourism in the Canary Islands, has long awaited this revitalization, which commenced in 2017 following the approval of the Modernisation and Improvement Plan (PMM) by the Canary Islands Government. This initiative has paved the way for private investors to embark on extensive renovations of hotels and tourist facilities throughout the area.

As part of this transformation, numerous hotels have either been entirely rebuilt or upgraded in classification, with some previously abandoned properties reopening after years of neglect. The number of five-star hotels in Puerto de la Cruz has increased from one to three, showcasing the dramatic changes taking place.

Among the notable reopenings is the Gran Hotel Taoro, which has returned to service after a 20-year hiatus, alongside the renowned Hotel Botánico. Additionally, the Radisson Resort & Residences Tenerife, formerly known as Hotel Parque San Antonio, is set to open next month following a comprehensive modernization.

Continued Investment in Hospitality

The trend of renovations continues with the Atlantic Hills, previously Hotel Miramar, which underwent an €8 million upgrade, and Hotel El Tope, which is currently being refurbished to include new family-friendly attractions such as a small water park. The Silken Saaj Mar Hotel, a boutique adults-only establishment located opposite the San Telmo promenade, reopened this year after a €3.5 million renovation, while the Fergus Puerto de la Cruz, formerly Smy Hotel, has also received a similar four-star upgrade.

International hotel brands are also making their mark in the city. Meliá Costa Atlantis has been renovated and rebranded under Meliá Hotels & Resorts, marking a new chapter for one of Puerto’s most iconic seafront hotels. The Hotel Botánico, recognized as one of the most prestigious hotels in the Canary Islands, recently closed for three months to undergo extensive modernization, reflecting its commitment to maintaining high standards.

Community and Government Support

The reopening of the Gran Hotel Taoro stands out as the most significant project, having undergone a €35 million renovation. This historic hotel has hosted notable figures such as King Alfonso XIII, Kaiser Wilhelm II, and Agatha Christie, who famously visited in the 1920s.

Local tourism organizations, including the Centro de Iniciativas Turísticas (CIT) and Ashotel, have commended the private sector’s efforts to enhance Puerto’s reputation as a premier destination. However, they emphasize the need for public investment to match these improvements, calling for upgrades to public spaces, shops, and dining areas.

Mayor Leopoldo Afonso has acknowledged the necessity for smarter public investments to complement the private sector’s revitalization. Since taking office 15 months ago, he has initiated several projects, including the acquisition of the old Chimisay cinema and the development of new underground parking facilities in key areas. Plans are also underway to demolish the old bus station next year.

Furthermore, the local council is collaborating with the Canary Islands Government to expedite the approval of a second Modernisation and Improvement Plan, which will enable more hotels to seek upgrades. Afonso expressed optimism about the future, stating that efforts are being made to sustain the city’s progress.

Visitor numbers have been on the rise, with Puerto de la Cruz welcoming over 711,000 tourists between January and September 2025, marking a 3% increase from the previous year. This surge represents approximately 17.5% of all visitors to Tenerife during that timeframe, according to data from Turismo de Tenerife and the Canary Islands Statistics Institute (ISTAC).

With increasing tourist arrivals, substantial investments, and renewed vigor from the hotel industry, Puerto de la Cruz is reestablishing itself as one of Tenerife’s most appealing and progressive destinations, blending its rich history with a vision for the future.

Key points

• Puerto de la Cruz is undergoing a €100 million investment in hotel renovations.
• The transformation began in 2017 with the approval of the Modernisation and Improvement Plan.
• The number of five-star hotels in the city has increased from one to three.
• Gran Hotel Taoro reopened after a €35 million renovation, attracting notable historical figures.
• Visitor numbers rose to over 711,000 between January and September 2025, a 3% increase from the previous year.
• Local authorities are working on public investments to complement private sector improvements.
• New hotels and renovations include the Radisson Resort & Residences Tenerife and the Silken Saaj Mar Hotel.