Meliá Hotels International, Calviá City Hall and the Balearic government have begun construction of a new hotel and shopping mall in Magaluf, Mallorca, which marks the next phase in the repositioning of the destination.

Leading Spanish Hotel Group, MHI is supporting the venture by investing the largest private investment of €45 million and will oversee the creation of a new central social hub.

It will further contribute towards the area’s international positioning and enhance the profitability and sustainability of Magaluf’s tourism industry.

Set for completion in 2018, the complex will include a modern hotel, underground parking space for 200 cars and more than 5,000m² of retail, food & beverage outlets and terraces, which will be located parallel to Magaluf’s beachfront.

It will offer professionals and families holidaying in Magaluf and wider Mallorca, as well as residents, the opportunity to enjoy a variety of new quality international high-street retailers and F&B outlets to encourage visitors to spend longer in the destination.

The new shopping mall will also create more than 150 employment opportunities for seasonal and permanent workers.

Following a public-private sector cooperation agreement, the Calviá Beach regeneration project was launched in 2012. As part of the initiative, Meliá Hotels International has renovated all hotels in the area, totalling more than 3,500 rooms, through the introduction of new brands and experiences.

MHI’s new four-star hotel will be the only new-build property to be added to the company’s Magaluf portfolio.

Situated next to Magaluf’s promenade, the hotel will provide state-of-the-art facilities, more than 270 rooms, rooftop and upper terrace hanging pools with views over the Mediterranean, plus a restaurant at street level open to guests, tourists and locals.

Mark Hoddinott, executive vice president real estate at Meliá Hotels International, said: “This new development is the best way to end a project in which the company has worked tirelessly to make Magaluf one of the best destinations in the Mediterranean.

“We will maintain our commitment to making Magaluf a world leader in innovative tourism that generates value for society as a whole.

“This is the responsible tourism model to which we are committed and which frames our future growth.”