A hotel that has stood closed for more than two decades in South Gran Canaria is set to return as a luxury boutique retreat under a €23.5 million redevelopment project.

The former Park & Sport hotel Helga Masthoff, in Los Palmitos, San Bartolomé de Tirajana, will undergo a complete refurbishment, bringing a long-disused property back into the island’s tourism market.

Plans include renovating 49 existing rooms and building five independent villas, creating 54 accommodation units. The site, which covers more than 33,000 square metres, will also add a new spa, dining and leisure facilities.

The future hotel will focus on nature, wellbeing and personalised stays, offering a smaller alternative to the large holiday resorts elsewhere in the south of the island.

The investment is being promoted through Hafraro, led by the Canarian family business Grupo Roso and investment firm Buenavista Equity Partners.

Buenavista’s NextGen Urbano fund is contributing €8.5 million linked to European NextGeneration EU funding, with bank lending completing the financing package.

The property will be managed by IT Hotels Unique Spaces, which is a company specialising in small luxury hotels and distinctive accommodation. The project will be its first venture in the Canary Islands.

The hotel has an unusual sporting history. It opened in 1978, having been founded by German tennis player Helga Masthoff, who reached the French Open final in 1970, and her husband.

Its original facilities included six tennis courts, a swimming pool, three saunas, a jacuzzi, a golf practice area and a putting green. Sport and wellbeing were central to its appeal, long before specialist active holidays became commonplace.

The redevelopment will shift the emphasis towards boutique accommodation, dining and the surrounding natural landscape, although the promoters intend to preserve elements of the hotel’s original identity.

Grupo Roso has more than 50 years of business experience and has previously been involved in tourism and property developments including Puerto de Mogán.

The Los Palmitos scheme reflects a wider investment trend towards refurbishing existing hotels and offering more specialised accommodation.

For visitors, it would add a new luxury option in an inland setting away from the main coastal resort areas. However, no reopening date has yet been announced, so travellers will need to wait for further details before planning a stay.