Famous Malaga province spa set to reopen after owners settle debt and exit bankruptcy proceedings

The popular Carratraca spa in the north of Malaga province will be able to reopen, even sooner than expected. The facility, which was around at the outset of tourism on the Costa del Sol, will emerge in the coming days from the public bankruptcy proceedings it has been subject to for just under a year.

The owners of the Hotel Villa Padierna Thermas de Carratraca has paid all the debts and external credits it had outstanding, charged to various investment funds, at a cost of approximately 3.5 million euros. In addition, the intragroup loans, internal to the group of companies that make up the hotel, have also been paid, as confirmed to SUR by sources from the insolvency administration.

In this way, this week the conclusion of the insolvency proceedings has been requested due to "full satisfaction of the creditors" (art. 465.5 of the insolvency act). Now, the property is awaiting the judge's order to resume full powers for the management of the luxury hotel and spa.

Although it has been closed since the pandemic, the insolvency phase actually began in 2024, so it has been resolved very quickly compared to the average for this type of legal procedure.

It should be remembered that last month a public auction was called, which was ultimately cancelled. The lot included the aforementioned five-star accommodation, as well as the spa complex with mineral-medicinal waters. In addition, other facilities and adjoining areas (such as the car park) were also included, all offered together as a single lot. The appraised value of the entire package was 3.4 million euros.

The question now is how long it will take to get everything in order for the long-awaited reopening of this space, which is key to the economy of Carratraca and its surroundings in the upper Guadalhorce valley. The luxurious complex, specialising in health and wellness, consists of two separate buildings: the hotel and the thermal baths, connected by a tunnel for the comfort and privacy of the guests.

According to the registry file of the regional ministry of tourism, the accommodation has 44 rooms and suites, with a total of 81 beds. The spa has a capacity for 150 people, with thermal baths and pools, inhalation therapies, massages and more.

In addition to these, the company also owns a 100-square-metre house in Calle Baños in the same municipality; an urban plot of 635 m2 in Calle Antonio Rioboo, 28; another plot (185.45 m2) in the same street (the hotel car parks); and a rustic plot of 25,760 m2 in the Partido de La Vega del Acebuche-La Moraleda.

The hotel involved an investment of 18 million euros between 2006 and 2007 and was seen as a major boost for luxury tourism in the interior of Malaga. It was managed by Ritz-Carlton, which offered personalised programmes combining accommodation, medical consultation, treatments, diets and activities. However, the health crisis unleashed in the wake of Covid dealt the final blow.

The accommodation is located in the old Hostal del Príncipe, after being completely restored, while the spa was created in the mid-19th century, when the thermal baths belonged to the Conde de Teba (Count of Teba). Trinidad Grund, a key figure of the Malaga bourgeoisie of the 19th century, was one of the driving forces behind the creation of this spa, which made Carratraca one of the first tourist attractions in Spain. Its sulphurous waters are beneficial for the skin, rheumatism, the digestive system, the nervous system and bone lesions, among others.