Puerto de la Cruz is currently experiencing the most extensive hotel modernisation programme since tourism first took hold in the Canary Islands. Over the past decade, private investment has driven a profound transformation of the city’s accommodation offer, with nearly €100 million invested in the renovation, reopening and repositioning of hotels — including the iconic Gran Hotel Taoro.
A strategic renewal to reposition the destination
The renovation process began in 2017, after the Canary Islands Government approved the Plan de Modernización y Mejora (PMM), a strategic planning tool that finally allowed hotels in the city to be upgraded, extended or repurposed. Until then, the plan had been postponed for years, leaving several buildings unused or in a deteriorated state.
The objective has been twofold:
- Deep refurbishment of existing hotels to improve quality standards, and
- Recovery of abandoned or closed properties, bringing them back into operation.
Thanks to this modernisation wave, the city has shifted to a higher-quality tourism model. Puerto de la Cruz previously had just one five-star hotel; now it has three:
- Hotel Botánico,
- Gran Hotel Taoro, and
- Radisson Resort & Residences Tenerife (formerly Hotel Parque San Antonio), which will complete its comprehensive refurbishment shortly.
Key milestones in the transformation
- Tigaiga Suites (2017): Renovated from the former Florasol complex and repositioned as an upmarket accommodation option.
- Atlantic Mirage Suites & Spa (2018): Former Bellavista apartments, modernised after a €10 million investment, upgraded from 3 stars to a 4-star adults-only hotel.
- Taoro Garden Hotel (2018): Previously the Atalaya Hotel, closed since 2011 and brought back into operation as a 4-star hotel.
- Miramar → Atlantic Hills: Over €8 million invested in renovations.
- Hotel El Tope (2022): Acquired and modernised by Macaronesian Hotels & Resorts, including plans for a family-oriented children’s water park.
- Silken Saaj Mar (2024): A €3.5 million renovation of a hotel overlooking the San Telmo promenade, now operating as a 4-star adults-only boutique hotel.
- Fergus Puerto de la Cruz (2025): Former Smy hotel, fully upgraded.
- Meliá Costa Atlantis (2025): Rebranded and renovated to join the Meliá Hotels & Resorts portfolio.
One of the most symbolic projects is the Gran Hotel Taoro, often regarded by the sector as “the jewel in the crown”. After being closed for 20 years, the building has undergone a €35 million restoration. The property is owned by the Cabildo de Tenerife, which co-financed the project. The hotel’s historic significance is notable: past guests have included King Alfonso XIII, Kaiser Wilhelm II, the Duke of Kent and writer Agatha Christie.
Private investment vs. public infrastructure
The Centre for Tourism Initiatives (CIT) and hotel association Ashotel praise the determination of private investors, describing their contribution as “immeasurable”. However, both organisations warn that this effort is not being matched by public-sector investment. They highlight stalled urban projects that continue to damage the city’s image, including:
- the redevelopment of San Francisco Park,
- the long-delayed expansion of the Botanical Gardens (pending for over 30 years),
- the unresolved future of the Iders building, and
- the derelict old bus station.
They call on authorities to speed up urban improvements, enhance public spaces, and encourage investment in the commercial and gastronomic sectors.
The mayor pushes for progress
Mayor Leopoldo Afonso, a native of Puerto de la Cruz, agrees and says he is “determined” to resolve long-pending issues. In the past 15 months, the local council has:
- acquired the historic Chimisay cinema,
- granted the administrative concession for several car park projects (Plaza de la Constitución, Plaza de Europa and Punta Brava),
- initiated procedures to demolish the old bus station next year.
He also stated that the local authority is pressing the regional government to accelerate administrative procedures and approve the second PMM, which many hotels need in order to continue modernisation.
Tourism figures confirm the turnaround
Between January and September, 711,805 tourists stayed in Puerto de la Cruz — an increase of 3% compared with the same period the previous year, according to data from Turismo de Tenerife and the Canary Islands Institute of Statistics (ISTAC). This represents 17.5% of all visitors to Tenerife during that time.
