Hotel Chain Takes Radical Step Amid Tenerife Housing Crisis
The housing crisis in southern Tenerife has reached such extremes that a hotel chain has resorted to buying two unfinished buildings to shelter its workers. Spring Hoteles, a company in the midst of expanding its operations on the island, acquired the two cement-shell structures for €2.4 million. Located in San Isidro, Granadilla de Abona—a key commuter town for tourism workers—the buildings will eventually provide 92 apartments.
Why Workers Can’t Find Affordable Housing
Miguel Villarroya, CEO of Spring Hoteles, explains that completing these buildings will offer employees an affordable housing option in an area where conventional rentals are “increasingly difficult, if not impossible” to find. He blames two main factors: the “uncontrolled growth” of vacation rentals and the “failure of authorities” to meet the “extraordinary demand” for social housing. “Every tourism worker faces serious challenges finding reasonably priced rentals, even in outlying areas where rents used to be cheaper,” Villarroya states.
A Broken System for the Canaries’ Main Industry
Villarroya criticizes the tourism model, arguing it fails when “90,000 vacation homes have been allowed without regulation.” Poor urban planning, he says, has turned residential zones into tourist hubs, creating the root of the problem. This marks the first time a hotel chain in the Canary Islands has taken such drastic measures to house its staff, underscoring the severity of the crisis.
Expansion Amid a Housing Shortage
Spring Hoteles made this move during a pivotal expansion phase. Recently, it acquired the Mare Nostrum Resort in Arona for €430 million—the largest deal in Spain’s hotel sector. With upcoming projects, the chain will surpass 3,000 rooms in Tenerife alone, requiring nearly 2,000 employees. “We’ll keep seeking housing solutions because, under current conditions, many workers simply can’t find affordable rentals,” Villarroya adds.
The Buildings: A Practical Solution
The two buildings—one costing €600,000 (32 apartments) and the other €1.6 million (62 apartments)—are in central San Isidro. A key factor in the purchase was their valid construction permits from Granadilla de Abona’s council, speeding up completion. The company may adapt units for shared living if employees prefer.
Vacation Rentals Dominate the Market
The impact of vacation rentals on southern Tenerife’s housing market is staggering. Adeje, Arona, and Granadilla de Abona—the island’s top tourist municipalities—host 9,717 vacation homes (half of Tenerife’s total), yet only 496 conventional rentals are available. Short-term rentals outnumber long-term ones 20 to 1. Prices are equally dire: in Adeje, rents start at €800; in Arona, €700-€800 gets a cramped 40-50m² flat; and in Granadilla de Abona, the cheapest option (€620) means sharing kitchen and bathroom.
A Pioneering Initiative
“We can’t stand by while our workers struggle to find homes,” Villarroya emphasizes. Spring Hoteles’ unprecedented step may inspire other tourism-dependent businesses to follow suit. The crisis, he notes, affects not just hotels but “the entire tourism ecosystem.”
