Pacha Group has effectively been split into two separate entities with the much rumoured sale of the hotel and nightlife assets to Five Holdings, a Dubai based company owned by businessman Kabir Mulchandani.
The reported price of 320 million euros does not include the ‘Lio’ brand which will be retained and managed by existing owners Trilantic Capital Partners who purchased the Pacha Group from the Urgell family in 2017 for around 350 million euros.
Lio is viewed by many as the most dynamic brand within the group with a rapid expansion programme that has seen the cabaret with food focussed business open in Mykonos and London following on from their success in the old El Divino nightclub in Marina Ibiza.
Lio Mallorca opens in August and there’s also plans to open in Miami, Las Vegas and Dubai. The Dubai venue will be at the Five Luxe Hotel, owned and operated by Five Holdings.
The deal is being presented as a new strategic partnership to help international expansion however for all intents and purposes the group is being split into 2, a cherry each for want of a better expression.
As part of the deal Pacha Group will refund the 18 million euros loan they negotiated from the Spanish government as emergency measures to get them through the Covid pandemic which hit the nightlife industry very hard.
Pepe Rosello, the founder and owner of Space Ibiza has been in the news again this week with his latest idea to keep the name alive. Space will be opening somewhere in Italy at a time when nobody really knows or possibly cares. It’s the latest attempt by Sr Rosello to keep the name alive and relevant but in a vastly changing landscape it’s mainly falling on deaf ears.
There’s no doubt that ‘back in the day’ Space Ibiza was the best club in the world. Not voted for by paid ads or sycophantic hacks but genuine partygoers and clubbers who had an experience like no other at a club that pushed all the boundaries.
Space Ibiza organically grew and never lost its edge but became more corporate over the years as the stakes became higher and when it eventually closed its doors in 2017 it was a fully functioning superclub making oodles of cash for Pepe and his chief trumpeter Carl Cox.
But the world moves on very quickly and if you were to ask the majority of young clubbers at Hï or Amnesia or O Beach or Ushuaia about Space Ibiza then I would hazard a guess that a glazed look would cross their eyes with a shrug of the shoulders. They are living in the here and now.
Shortly after Space closed its doors there were rumours perpetuated by Carl Cox and friends that Space would open in a new venue in Ibiza. That never happened. Then there was the new 5 star Space Hotel which also never happened followed by the opening of Space Eat and Dance, a small cocktail bar on the sunset strip which did happen but, with the greatest will, hasn’t set the world alight compared to its big hitting neighbours, Cafe del Mar and Mambo.
Now we have the new Italian job with a big announcement and a beaming smile from its founder. Does anyone under the age of 40 even care any more?
Pepe Rosello is now an octogenarian, he’s a prince amongst men, a true patriot of San Antonio who has served his time at the top table with class and distinction but his quest to keep the name alive threatens to spoil its legacy if the new ventures don’t live up to the past, which they won’t.
Time to let the legend be, Space Ibiza was a moment in time that is hard to put into words. Those of us who were lucky enough to witness it will never forget it. Desperately trying to keep the name alive threatens to devalue what went before.
Marcos Serra was sworn in as the Mayor of San Antonio last week for his 2nd four year term but now with an absolute majority rather than a flimsy coalition to work with. A vote of confidence from the local electorate for the young and likeable Serra, his to-do list will be long and varied but one thing keeps repeating on him like a hastily eaten kebab at 2am in the morning.
I’m referring, of course, to San Antonio’s infamous West End, a few streets in the urban centre that still manages to demand more column inches than anywhere else in Ibizas 2nd largest town. The above flippant remark is relevant as there are probably more kebab shops in the west end of San Antonio than actual bars which says it all about the progression of the area that has been a political hot potato for over 5 decades
The West End has gone through many changes since it’s conception in the 70’s. From upmarket evenings to riotous anything goes madhouse to today’s post-covid incarnation that is a shadow of its former self yet still draws the crowds with cheap booze and bawdy behaviour. It’s the anti beach club/superclub hangout where the same people who pay 300 euros for a sunbed and bottle of premium spirits in the daytime (whilst posting pretentious instagram pics of course) haggle over jugs of sickly sweet cheap alcohol that cost a fraction. While other Ibiza venues push up their prices to eye watering levels, the West End proprietors are the masters of their own destiny by undercutting their neighbours while hassling young kids to drinks packages designed to get them into a drunken stupor. A true race to the bottom.
Compared to other places, the area is gloriously downmarket with questionable characters aplenty. It doesn’t try to be pretentious or boring, it does exactly what it says on the tin – loud, proud, bawdy, boisterous and never dull. You need to have your wits about you as there’s plenty of chancers ready to pounce but this is all part of its ‘charm’. It not only attracts people for all the aforementioned reasons but for many it’s the starting point for their Ibiza journey, especially for those on a budget. For every negative there’s a positive and we could argue for hours on whether it’s good for the town but that will get us nowhere in the context of this article. It is what it is but that doesn’t mean it can’t change.
The big question is what will Marcos Serra and his local government do with the area over the next 4 years. In 2019 he produced a glossy video with sexy graphics on how he was going to upgrade the West End with a roof and paving. It looked great and although it produced much cynical commentary, at least it was a plan. Covid kiboshed that thought pattern but earlier this year the Mayor’s office brought in a financial initiative, offering a grant of up to 80.000 euros per business ‘to encourage a change of business model’ with the specific aim of changing pubs and bars to shops and restaurants that function during the day,” 6 businesses have applied so far.
This initiative is part of a three million euros fund obtained from the EU for urban improvement and beautification which prompted Mayor Serra to declare that ‘for the first time, a real investment is being made in the West End……..to give a leap in the quality of tourism in San Antonio’. Another idea was for the floor of the West End to be brightly painted by the artist Okuda however with elections looming and local feedback varied the Mayor got cold feet and put the plan on ice for the time being citing timing issues.
So lots of plans but no tangible changes so far but now Marcos Serra is back in the big chair, the whole of San Antonio is waiting to see if he can pull off a minor miracle and regenerate an area that is screaming out for some tender loving care albeit with an iron glove to rid it of its more undesirable elements.
It’s not out of the question, Ibiza has the uncanny knack of constantly reinventing itself, it only takes a bit of foresight and investment to change the mentality of the paying public. We have seen it with Ushuaia, Mambo, O Beach and too many more to mention.
The Mayor is in his early 40’s so is of a generation that has grown up with the West End evolving into the place it is today. He has been there on Saturday nights with all his mates so he knows exactly what needs to be done but in reality it’s more difficult than it sounds. If he can turn around this small strip of bars, clubs and fast food joints then his name will be etched in stone next to his statue at the bottom of the famous cobbled street. Whether he is brave enough to tackle it head on and break a few eggs to make a delicious tortilla is a whole different story.
Ibiza and Formentera’s election day proved to be definitive as the centre right Partido Popular (PP) swept aside all in front of them as they took control of all 5 Ibiza municipalities and the Island Councils of both Ibiza and Formentera.
The biggest surprise of the night was Rafa Triguero’s convincing win in Ibiza Town, winning with a crushing 15 seats on the 25 seat council. The capital city’s voters with a resounding rejection of outgoing mayor Rafa Ruiz whose socialist PSOE party returned a disappointing 7 seats.
In San Antonio, Marcos Serra returned an absolute majority with 12 seats on the 21 seat council, only missing out on a 13th seat by a handful of votes. It was a firm approval by the electorate of his dynamic leadership over the last 4 years, his youthful team celebrated long into the night knowing that the hard work must continue to consistently improve Ibiza’s second largest town.
In San Jose, Vicent Roig gained an impressive victory with 10 seats, just falling short of a majority however with Vox winning 2 seats a right wing coalition is highly likely. This is the first time in a decade that San Jose had turned blue and once again signals that the electorate were voting for change.
Sant Joan has seen much political controversy over the last few weeks as the PP publicly aired their dirty washing and this was reflected at the polls. Ex councillor Santi Mari formed his own party after failing to obtain the PP mayoral ticket and returned a respectable 2 seats but split the centre right vote meaning that the PP came away with 8 seats (down from 10) which was still good enough to claim a majority in the 13 seat chamber.Tania Mari will be the new Mayor.
The least surprising result of the night was in Santa Eulalia where Carmen Ferrer was voted back in to office increasing her foothold in the council from 13 to 14 seats. The conservative municipality rubber stamping her dynamic leadership once again for another 4 year term.
Vicent Mari, Sra Ferrer’s predecesor in the Santa Eulalia hot seat, was re-elected as president of the Consell de Ibiza (Island council) with a majority of 8 seats, an increase of 2 from 4 years ago. The 13 seat chamber now has an absolute majority for the first time in 8 years.
The biggest surprise of the night was the rise of the far right Vox party, who gained representation in all town halls except Sant Joan, and the downfall of the PSOE socialists who had a very poor day at the voting stations.
In Formentera the municipal and island council shifted to the centre right for the first time in 15 years with a win for the Sa Unió party which is made up of an alliance of the PP and the local Compromis party.
An historic night for Ibiza and Formentera and a big endorsement for the PP will have far reaching consequences for the islands over the next 4 years. With a big mandate and all councils pulling in the same direction expect big changes….but it won’t happen overnight.
It’s almost election time in Ibiza which means as sure as night follows day the usual political suspects will trot out the same lines that they have been coming out with for years even though things have drastically changed over the last decade.
Joan Torres, of the PI party, has promised to ‘eradicate excess tourism’ from San Antonio should he become Mayor in the local elections on 28 May. Sr Torres is the man who gained only 400 votes at the last election but was the kingpin in forming a government with the PP party and then consistently caused trouble by voting and briefing against his own team until he was removed late last year. If there was ever an example of why proportional representation doesn’t work then this is it.
Yet Sr Torres still uses this throwaway phrase for leverage. For years it was directed at San Antonio’s West End when chaos lurked around every corner and groups of naive youngsters would get the hard sell into buying a bottle of cheap spirits, mixers and several shots for a tenner each.
The result wasn’t pretty or dignified, a race to the bottom by unscrupulous bar owners undercutting their neighbours because they didn’t know any better. Then along came COVID and the West End didn’t open for the best part of 2 years and when it did, life and tastes had moved on dramatically. The area is now a shadow of its former self with only a handful of bars open for business attracting the cheaper end of the market, it still has a place in the tapestry of San Antonio even though the whole area now has to close at 3am.
Ibiza has been transformed over the last decade, some may say not for the better but the evolution has been stark, the personal spend of each tourist amongst the highest in the world. Ibiza has a product that other destinations can only dream of and is the envy of many yet opportunistic politicians still want to demonise youngsters for having a good time, biting the very hand that feeds them. Since when was it a crime to overindulge and let your hair down on holiday?
There is a line that shouldn’t be crossed and some tourists behaviour in the summer leaves a lot to be desired but these idiots are very much in the minority. The overwhelming majority have fun in the sun, no different to anywhere else with a build up of youngsters on a hot summers day with free flowing alcohol. To mark out San Antonio for its excessive past is doing a disservice to it’s future.
The spotlight of San Antonio’s ‘excess’ has shifted to larger venues who operate daily parties but they have plentiful security and fully stocked medical facilities. It’s when the tourists leave the venue that problems can sometimes arise and these venues should never get a free pass but should also be applauded for providing a controlled safe space for maximum enjoyment, that’s one of the reasons why they are busy every day.
There’s much that needs improving on the White Isle like the the local transport system so there’s not an over reliance on the woeful Ibiza taxi service or incentivising local businesses to open earlier in the season or clamping down on street sellers and pickpockets. Affordable housing for professionals and a few pedestrian pathways to stop people walking on main roads wouldn’t go amiss either
Ibiza has made its global reputation on world class entertainment and now you can add fine dining and top hotels as a reason why the island is at the very top of its game but there’s still much to focus on to make Ibiza a better place to live and visit. Let’s not let spurious pronouncements by polarising politicians cloud the real issues at hand.
It’s the final week of April and so far this month has been a real eye opener.
The big question over winter was if the post covid boom of last summer would lead to some form of bust this year however this has been emphatically answered with a ‘no’. In over 3 decades I’ve never known such a busy start to a summer season.
The Ibiza streets are already bustling, the beaches and restaurants are packed and the Island has come alive earlier than ever before. We have been blessed with some unbelievable weather but even so, the numbers don’t lie.
With more daily international flights coming into the Island than ever before the trend is set to continue for the end of April and May which is traditionally the low season. In San Antonio Pikes, O Beach and Mambo have already opened, the International Music Summit starts this week, a full month earlier than when it was originally conceived, and let’s not forget Ushuaia and Hï also have their opening parties this coming weekend. Even Amnesia has jumped onboard with an early party this Friday. Wow!
Not only have we seen an amazing start to the summer season, last week it was reported that Ibiza now has 4 of the 6 most expensive towns to buy a property in the whole of Spain – Full list here. Traditionally it has been Madrid and Barcelona at the top of the list however this has been superseded by Sant Josep at number 1 followed by Santa Eulària in second. Ibiza Town is in fifth place with San Antonio in sixth – who’d have ever thought that!
This is fantastic news if you already own a property on the White Isle but not so good if you looking to get on the ladder. As ever it’s a double edged sword but is another significant signal that Ibiza is at an all time high and since when has surging property prices been a bad sign about the local economy.
The elephant in the room as usual is the phenomenally high rental prices coupled with historically low wages and ongoing staffing issues. Many businesses are desperate for staff but there isn’t the footfall any more and even if there was, there’s nowhere for them to live, not at a reasonable price anyway.
So the conundrum of the White Isle continues to baffle the so-called experts but with world class clubs, a hotel sector that is unrecognisable from a decade ago, a burgeoning culinary reputation, 300 days of sunshine a year and the most incredible nature it doesn’t take a genius to unravel the riddle wrapped in a mystery inside an enigma.
The summer season is now well and truly upon us and the signs are very good, the usual issues will no doubt raise their head over the coming months but the view from inside tells us that Ibiza is at the very top of its game, make no mistake about that!
As the summer season approaches there’s a strange standoff happening in the UK press as the Daily Mail (surprise surprise) has gone to war on Ibiza and Mallorca in the Balearic Islands with increasingly negative headlines.
In short the UK press is presenting Ibiza and Mallorca in the Balearics as increasingly unaffordable for Brits, both tourists and residents with Lanzarote also coming in for stick for suggesting it needs to diversify away from the traditional budget Brit holiday.
It’s an interesting take on events which isn’t actually a million miles away from the truth although the sensationalist UK press are presenting it as a new phenomenon even though it’s been happening for years.
In truth Ibiza has been going more upmarket for over a decade but it was desperately needed after so many years of relying on budget tour operators filling 3 star hotels with plane loads of square deal tourists, this was the package holidays ‘glory days’ of stacking it high and selling it ‘cheap’ but with tour operators constantly squeezing prices it led to little or no investment in the core product.
We all know what happened to those tour operators once the internet opened up the market and people could start building their own dynamic package: flying from an airport of their choice and getting a private taxi to their desired hotel. Prices started to edge up but it was a win win as the penny dropped for the hoteliers who invested this new wealth back into their business adding luxuries and facilities to improve their product.
In very few years the whole template of Balearic hotels became a completely different animal appealing to new markets. In the mid 90’s the Hotel Playa d’en Bossa was one of Thomson Holidays many family hotels with its superb beach location and enormous kids club. Today it is the Ushuaia Beach Hotel. Things change and Ibiza’s secret has been to be ahead of the curve.
Enough of the brief history lesson, let’s get back to the UK’s press ‘outing’ the Balearics as an expensive destination. No sh*t Sherlock however as I’ve previously written about (link here) it doesn’t always have to be that way and the difference now is that tourists have the choice where previously they didn’t.
Other Spanish resorts have looked at their own template and realised they have to diversify and try to attract a more affluent crowd. This isn’t a bad thing and when it comes to some of the Canary Islands it was chronically overdue. Meanwhile Egypt, Greece and Turkey will keep doing their thing by offering very competitively priced holidays. It’s great to have a choice isn’t it! You pays your money and you takes your chance.
So is the Balearics now more expensive than ever? You bet your life it is but it was well overdue and looking at last year when records tumbled it obviously hasn’t affected the bottom line with these profits being reinvested back into the product with prices edging up even more.
There’s no denying that the recent boom has brought challenges, not least a housing crisis for those who’s job it is to service the tourist industry. The local government talks a lot but has no solution so the emphasis remains with employers to house their staff and include it in their employment package but with low supply and high demand it’s easier said than done. The flip side of this is if you are lucky enough to have invested in Ibiza property over the last 20 years then the capital growth is off the scale. There’s a yang to every yin.
The market has changed, it’s constantly evolving and the Balearics are a snapshot of that but it isn’t a negative. Has the ‘cheaper’ British market been squeezed out? A little, although Jet2 holidays is a roaring success filling the gap of the traditional tour operators with an amazing array of airport and accommodation options and some fantastic prices if you stay away from kids holidays.
There’s always going to be winners and losers and the UK press’s depiction of Ibiza amd Mallorca, although not entirely inaccurate, paints a distorted picture of the truth. Ibiza and the Balearics are finally catching up with other truly world class destinations, not by chance but by hard work and strategic planning but there’s still a long way to go.
Perception is everything and there’s 3 sides to every story. There are plenty of challenges but whether the UK press like it or not, Ibiza and the Balearics have never had it so good.
Summer is around the corner. With it comes plenty of challenges and one that gets more headlines than most is the Ibiza housing crisis – there isn’t anywhere to rent at a reasonable price.
There are 2 main profiles of tenants, those who require short term rental i.e. 6 months (usually over summer) and those who want an annual rent for a minimum of 12 months. In the not too distant past it was relatively easily to find a summer apartment, in 2005 my agency alone had over 100 summer units for rent whereas today we have precisely zero..
The simple reason why summer only apartments have all but disappeared is the high demand from people wanting to live in Ibiza all year round and the prices landlords can now charge for a 12 month let. It’s been getting more difficult every year, high demand has gradually pushed up prices to such a level that landlords can now maximise by renting for 12 months and receive an excellent income.
The rising population of the island over the last 20 years has moved the Ibiza economy forward so many can afford to live here all year rather than for a transient 6 months then needing to go off-island for work in the winter. Ibiza offers a lifestyle that is unmatched by many other places with quiet winters and busy summers, not forgetting the famous 300 days of sunshine per year.
This obviously doesn’t help those coming to the island desperate to find a place to live for summer but this is the reality of the situation. It’s a basic supply and demand scenario. Low supply, high demand of apartments is pushing up prices for the few apartments there are to untenable levels.
Personally speaking, as an agent I haven’t had a reasonably priced apartment offered to me for a long time, agents don’t get the units like before as there’s such a long queue for apartments that most owners have plenty of tenant options without needing an agent.
A recent survey showed that the majority of tenants in Ibiza Town are paying 700-1300 EUR per calendar month for their home. This may sound cheap but historical contracts can only be raised by inflation every year. It’s now difficult to find a decent dwelling for this price and things aren’t getting any easier however after a stagnant few years new apartment blocks are being built again.
The Balearic government has talked about capping the price of rental properties but this will never happen in a free market although local licensing and/or taxation could be a way of control, something has to give sooner or later. Social housing has also been mooted but the local authorities do a lot of talking but don’t seem to want to get involved as this opens up a hornets nets.
So, unfortunately, don’t expect things to get much better any time soon. My advice is look to rent a room or share a 12 month let to spread the spiralling costs or if possible try and buy. As you can see from above, it’s a good investment with solid returns.
The photos of Bora Bora being pulled to the ground have been met with an outpouring of online tears as yet another Ibiza icon comes to a crashing end. It was a similar story when Space closed for the last time and its no coincidence that these 2 venues were inextricably linked throughout the 90’s and noughties ‘glory days’.
As is now usual at these times the ‘Ibiza has lost its soul’ posts have appeared on social media with many reminiscing about the ‘good old days’ when Ibiza had spirit but they also fail to mention that during these times the single carriage road between Ibiza Town and San Antonio was the most dangerous in Spain and most hotel air conditioning was opening a single glazed window.
The rose tinted glasses are hard to remove at times like these and of course it’s sad when any iconic institution closes down. It’s never easy to say goodbye but it does feel like the right time to move on.
Bora Bora was a mythical daytime venue that defied logic and created memories that can never be forgotten but it was of a certain time, a very different time. Ibiza has moved on in ways we could never have imagined and whether you like it’s direction or not, it’s a runaway train that can’t be stopped.
Bora Bora’s location on the seafront in Playa den Bossa is now prime real estate screaming out for a makeover especially when you look around at the resort and see where the market is going with luxury hotels mixing in with world class venues. Whatever happens at the new venue it won’t be as much fun as Bora Bora and it definitely won’t be as messy but for sure it will be more discerning and a lot more expensive. Welcome to the new Ibiza.
These decisions aren’t taken lightly but as the fun police have been coming down hard in recent years there are better ways to make money and the big investment coming into the island shows that there’s no shortage of those wanting a piece of the action.
So by all means shed a few tears for a past love that was part of a romantic story of a bygone age now confined to the history books like Ku’s open air parties, Garlands daytime parties at Kanya and even the Festival Club but also be excited that Ibiza is once again leading the way in reinventing itself for the next generation of demanding thrill seekers who require specifics to stimulate their instagram feed. You might not like it but you can’t stop progress.
The new Ibiza goes from strength to strength, the direction of the aforementioned runaway train doesn’t sit well for many which is understandable but if you were one of the lucky ones who was able to sample those magic mornings in Space then straight to the lunacy of Bora Bora be content that you were able to experience something that the next generation will never be able to as they frantically search for those likes and affirmations on their filtered social media posts.
Those old, grainy 35mm developed photos of lost days at Bora Bora can never be undervalued or taken away so don’t be sad that it’s over, be happy that it happened and that you were one of the lucky ones able to tell the tale. Bye bye Bora Bora, it was fun but Ibiza has moved on.
Reco des Sol is a fairly non-descript hotel in San Antonio. In fact you’ve probably never even noticed it but it’s there in all it’s 90s glory. This is about to change. This hotel has now been granted a licence to undergo a radical facelift and become San Antonio’s latest 5 star hotel that will incorporate the prime piece of land that is currently used as the parking area for O Beach.
Work starts very soon and once finished this new stunning 5-star complex with it’s raised position will dominate the eye-line and will totally change the dynamic of this area where San Antonio meets the entrance to San Antonio Bay which already has three existing 4 star hotels (Bellamar, Hawaii & Ocean Beach) within a few hundred metres of each other. A new 5 star hotel complex kicks things up several notches.
This exciting development is the direction that the new Ibiza is heading in like a runaway train. The unquenchable desire for luxury accommodation driven by a more discerning, mainly adult demographic who want to experience the legendary Ibiza hedonism but also want a stylish base to do it from and more importantly are prepared to pay a premium for the experience.
The fact that San Antonio is now ticking these boxes should come as no surprise. A resort that’s been undervalued for decades, a victim of its 80’s notoriety but is now punching with the big boys on every level. OKU hotel and TRS, both 5 star hotels, have recently opened in Cala Gració with incredibly successful results that haven’t gone unnoticed. There’s still work to be done but Ibiza’s 2nd largest town is undergoing its own transformation.
To throw more fuel on the hedonistic inferno, a certain establishment not a million miles away from Reco des Sol is rumoured to be heavily involved in the new complex that will create a unique vibe for that area and really set the tone for San Antonio’s immediate future.
How the island has changed, a relentless surge upwards for over a decade. As other destinations have discovered you have to change or stagnate. Ultimately the market decides on the direction and Ibiza (which has never been slow on the uptake) has grasped it with both hands. It’s not to everyone’s taste but results don’t lie and 2022 was a record yield for luxury hotels with a seemingly insatiable thirst for high end products on the White Isle.
The vibes are good, the Island is on a forward trajectory few could have foreseen. Expect more announcements over the coming weeks and months that will set the tone for the next decade.
MAN IN SAN AN by Martin Makepeace 