The Kempinski hotel, near Estepona, has closed for two months for renovations. The four-million-euro building work is affecting the lobby area and the restaurant, and bosses have decided that it is better to shut the doors.
Around a hundred people work at the hotel and sixty on full-time contracts have been laid off in an agreement reached with trade unions which allows them to continue to receive their salary.
Lola Villalba of trade union Comisiones Obreras has welcomed the investment the owners of the hotel are making, saying that it is another sign that the tourism sector has overcome the financial crisis.
The hotel has said it wants to “create elegant and modern public areas”.