MADRID—Jumeirah, the Dubai-based group famous for creating the world’s first seven-star hotel, the sail-shaped Burj Al Arab, is planning to open its debut European resort property on the Spanish island of Mallorca in just over a year as part of the company’s ongoing expansion.

“We have identified Europe as one of the key geographical growth areas for Jumeirah Hotels and Resorts, and we are always looking at locations that are in key resort and gateway city locations,” said Derek Picot, Jumeirah regional manager.

German investment company Deka Immobilien GmbH acquired the project for the open-ended property fund WestInvest Interselect. It is being developed by Belgium-based Wingfield Corporation, and Jumeirah will operate the five-star, 120-room hotel under a long-term lease.

Picot declined to comment on the project’s cost or the exact composition and structure of the management agreement.

Mallorca, the largest island in Spain’s Balearic archipelago and long popular with well-heeled Europeans, was chosen because it is becoming one of the most desirable and fastest-growing island vacation spots in the Mediterranean, Picot said.

Luxurious resort, luxurious amenities

All of the guestrooms and suites in the cliffside hotel, with interiors of olive wood and leather designed by Amsterdam-based FG Stijl, will have sea or harbor views with balconies or terraces overlooking the northwestern town of Port Soller.

Jumeirah Port Soller was originally scheduled to open in early 2010, but a company spokeswoman said the inauguration is now set for a year later.

“We will be utilizing new technology to recycle as much of our water consumption, using ‘grey’ water to sustain our vegetation,” Picot said. “We will also be employing the latest technology to reduce energy consumption.”

This includes, he said, cutting edge “petro/electro technologies” for all ground transportation vehicles.

The resort will employ around 220 people in the high season.

A crowded high-end market

Jumeirah Port Soller was originally scheduled to open in early 2010, but a company spokeswoman said the inauguration is now set for a year later.

“Delays on projects of this scale are not uncommon,” she said.

Jumeirah is aiming at Germany, Britain, Spain, other European countries and the Middle East as its key source markets

Asked if this was the ideal time to open a luxury property, Picot replied, “This hotel will open in over a year from now at a time when the current economic cycle should have eased.

“We are confident,” he continued, “that the unique characteristics of the hotel will be embraced by discerning travelers.” 

Those discerning travelers can already choose from such other local, high-end properties as the St. Regis Mardavall, the ArabellaSheraton Golf Son Vida, La Residencia and the Castillo Hotel Son Vida.

However, Picot believes that Jumeirah Port Soller will hold its own against the competition because, he argued, the hotel offers “a stunning location and a leading product and service on the island.

“It will be truly unique,” he said.  

Mallorcan Hotel Federation chief Alfonso Meaurio said he felt there was room on the island for another luxury property and that Jumeirah’s prestige could only help the local tourism draw.

“Soller has enjoyed very good occupation rates in recent years, so this new product in such a privileged area should be strong enough to attract guests (and) adding internationally renowned chains here certainly helps our positioning and tourism know- how,” he said.