Boutique hotel in Marbella Old Town, next to the Arabic Castle, with 4 apartments (expandable to 7) and commercial space

Boutique hotel in the Old Town of Marbella next to the Castle with 4 apartments (with the possibility of expanding to 7) and a commercial space, built in 2016.

Located in the heart of Marbella’s Old Town, just 4 metres from the Arabic castle and a 5-minute walk from the beach, this remarkable building combines one of the most privileged locations on the Costa del Sol with engineering-level construction quality. Three floors plus two rooftop terraces deliver over 400 m² of space across 300 m² built and 100 m² of terraces, all on a 99.4 m² plot.

Designed and built by an engineer-owner in 2016 using state-of-the-art construction technology, every detail of this property has been documented in images and videos. External walls feature a double-layer build with acoustic and thermal panels achieving 56 dB noise reduction. Windows and French doors use four-pane special PVC with security glass throughout — creating a true oasis of silence in the middle of one of Marbella’s most vibrant and sought-after neighbourhoods.

The four apartments are spread across the first and second floors. Apartment 1 (35 m², 2 balconies) and Apartment 2 (60 m², 4 balconies) sit on the first floor. Apartment 3 (35 m², 2 balconies) and the standout Apartment 4 (160 m², 4 balconies + 2 rooftop terraces) occupy the second floor. Finishes are exceptional throughout: Italian marble shower areas, single-piece Turkish stone sinks, Victorian-style UK taps, Daikin Emura air conditioning, and bespoke Andalusian-style carpentry in every unit.

The ground floor commercial space (60 m²), currently operating as a restaurant with dual street access, is rented at €2,300/month — generating immediate income from day one. A ready-made project exists to convert this space into 3 additional apartments, bringing the total to 7 units and significantly increasing the property’s rental yield.

The second rooftop terrace is structurally prepared to support a pool, with a full design project already in place for a chill-out area with fireplace, sun deck, and swimming pool — making the top-floor apartment an extraordinary lifestyle proposition with views over the Marbella rooftops and mountains.

The smart home system automatically adjusts lighting, climate control, and security based on occupancy, keeping consumption within a 3,800W limit and fully controllable remotely from any device. Solar panels heat a 1,000-litre hot water tank, and an in-house water purification system produces 4 m³ per hour. Energy rating B for both consumption and emissions.

This boutique hotel in Marbella Old Town is a rare investment opportunity in one of the Costa del Sol’s most iconic locations, with proven rental performance and outstanding growth potential.