Candelaria Moves Forward with Major Redevelopment of Former Tenerife Tour Site Including Housing, Shops and a New Mercadona

For years it’s been one of those places people drove past and thought:

“Surely something has to happen there eventually.”

After decades of abandonment, fires and occupation issues, the old Tenerife Tour Hotel site in Las Caletillas, Candelaria finally looks set for a new chapter.

The Candelaria Town Hall has now given initial approval to the urban proposal that would completely transform the seafront plot.

And it’s a fairly big change.

What’s Planned for the Site?

The proposal affects the former hotel land, covering more than 8,300 square metres along the Las Caletillas seafront.

Plans currently include:

• Residential housing developments
• Commercial premises
• Public open spaces
• Extension of the promenade
• A new Mercadona supermarket
• Pedestrian areas and terraces facing the sea

The aim is to replace what has become an abandoned eyesore with a mixed-use coastal space.

A New Look for the Seafront

One of the biggest parts of the project is reconnecting the area with the sea.

The proposal includes extending the Las Caletillas promenade, adding public plazas, terraces and pedestrian zones.

Developers say the intention is to:

“Bring the sea closer to walkers and bathers” while creating new leisure and commercial spaces.

Not a bad idea really.

The current view has been abandoned buildings for years.

Housing Remains Part of the Plan

The site keeps its residential designation, with housing planned in buildings of up to three storeys.

Commercial use will also be introduced near the coast, creating a mix of homes and retail areas.

The project also includes public land transfers to the Town Hall, including:

• A new promenade section over 900 m²
• Additional public areas linked to terraces and commercial activity

Mercadona Confirmed as Part of the Development

The larger commercial plot has been reserved entirely for retail use.

Planning documents specifically identify Mercadona as the supermarket operator behind the proposal.

According to the project, the company is already involved through agreements linked to the final planning approval.

Which means yes…

Another Mercadona appears to be on the way.

At this point they’re spreading around Tenerife faster than roadworks.

Temporary Suspension on Building Licences

To allow the planning process to move forward, the council has temporarily suspended building licences and development permissions within the affected area while public consultation takes place.

The former hotel itself dates back to 1964 and has stood abandoned for years.

If approved fully, the redevelopment would completely change one of the most visible stretches of Las Caletillas seafront.

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