One of Marbella’s most notorious buildings is set for a dramatic comeback.
The former Sisu Hotel Boutique, left burned out and abandoned near Puerto Banus for almost six years, is being transformed into a new five-star hotel.
It comes as part of a €15million redevelopment aimed at wiping the slate clean on decades of controversy.
The project is being led by Arnaud Albouhair, founder of Nao Club Marbella and son of well-known businesswoman Olivia Valere.
His plan is to turn the troubled site into a high-end boutique hotel with around 50 rooms, two restaurants, a spa and a nightclub.
Construction is expected to begin in the coming months, with a target opening date of 2028.
From crime hotspot to luxury resort
The building sits just off the A-7 between Puerto Banus and Nueva Andalucia, in a prime location that has long contrasted with its troubled past.
Large banners already cover the skeleton of the structure, teasing its transformation with the slogan: ‘Have you ever dreamed of paradise? Welcome, you’re in it.’
Despite a devastating fire in 2020 that killed one person and injured nine others, developers say the core structure is still sound and will be reused.
However, all internal systems – including plumbing and electrics – will need to be completely replaced.
The redesign will also reduce the number of rooms from 75 to 50, making them larger and more in line with luxury standards, reports Diario Sur.
A history marked by scandal
Reinventing the site won’t be easy. The building has spent three decades in the spotlight and rarely for the right reasons.
Originally opened as the Lorcrimar hotel, it became entangled in the infamous Malaya corruption scandal that rocked Marbella. Its early development was linked to controversial planning deals involving figures from the GIL era.
Over the years, ownership changes did little to improve its reputation. When it later became the Sisu Hotel Boutique, it gained notoriety for wild pool parties, constant noise complaints and a reputation as a hub for excess.
In 2010, one of its owners was arrested outside the hotel and extradited to the UK over tax offences.
Then came one of the most shocking incidents in 2017, when a hand grenade attack set fire to part of the complex.
No one was injured, but it cemented the hotel’s reputation as one of the most troubled venues on the Costa del Sol.
That reputation only deepened after the fatal fire in 2020, which left the building abandoned ever since.
A fresh start?
Now, the Valere-linked project aims to completely reset the narrative.
Developers are keen to distance the new hotel from the Sisu brand, and a new name is expected.
Meanwhile, the nearby Nao Pool club is set to operate for just two more seasons before changing hands.
