Kategora launches new hotel investment opportunity on the eastern Costa del Sol

Kategora, a Basque developer specialising in the Living sector, has begun marketing Kategora Malak, its new hotel complex in Rincón de la Victoria on the eastern Costa del Sol. The Malaga project, which involves a 36-million-euro investment and is due to open in 2029, strengthens the company’s presence on the Costa del Sol. It joins the Beach line of its Kora Living hotel brand, which focuses on holiday accommodation.

Kategora Malak will offer 120 one- and two-bedroom apartments ranging from 55 to 93 square metres, with terraces and hotel services. The apartments start at 278,000 euros, with an estimated net return of six per cent. The scheme follows Kategora’s investment model: each buyer owns an apartment and hands over its operation and maintenance to the operator, Kora Living, which will manage the establishment as a whole under a hotel licence, offering investors full legal security and the highest possible return on the asset.

The company already has operating experience in Malaga province through the Kora Olea flex living accommodation in Los Álamos (Torremolinos), sold as Kategora Oceanika. Since it opened last March, the complex has averaged occupancy above 90 per cent, with ratings of over nine out of ten on Booking and 4.5 out of five on Google. With Kategora Malak, the company is taking another step in its growth in one of the leading holiday destinations on the Malaga coast.

The development will be built on a plot zoned for commercial use and earmarked from the outset for hotel operations. The 120 apartments will form part of a single hotel establishment, with Kora Living, a leader in what it calls conscious hospitality, providing professional, centralised management of activities, services and maintenance.

Set on a Mediterranean-facing hillside, Kategora Malak will combine fully equipped apartments and hotel services with communal spaces designed for rest and wellbeing, including a pool, gardens, a fitness area and social spaces. The design will use the land's natural slope, with terraces and landscaped paths that help the complex blend into the landscape and make the most of the Mediterranean climate. Its coastal location and proximity to Malaga city complete an offering designed for year-round stays, for leisure and business travellers alike.

The complex will have 13,600 square metres of built space and almost 2,500 square metres of communal areas, split between 590 square metres indoors and 1,900 square metres outdoors. These include a lobby, coworking space, a gastro txoko (a Basque tradition of a space to meet and enjoy food), a fitness area, a yoga zone and sauna, plus a pool, gardens and a stepped solarium adapted to the terrain.

The name Malak refers to Malaga city’s various historical names and is the starting point for an architectural approach inspired by the area. Malaga firm HCP is the architect; HofmanDujardin handles the interior design, drawing on Andalusian materials and tones; and The Garden by Chio oversees the landscaping, using native plants and reinterpreting traditional terraces.

This integration goes beyond design. In line with its conscious hospitality model, Kora Living plans to prioritise local staff and suppliers when setting up and running the hotel, and to use locally sourced materials and zero-mile products. “For us, integrating a hotel into its surroundings goes far beyond its architecture. We want Kategora Malak to contribute to the local economy, create opportunities to work with businesses in the town and let our guests discover everything Rincón de la Victoria has to offer. We understand that being part of a destination means working with the people who know it and bring it to life,” said Eneko Balda, Kategora’s Chief Development Officer.

In line with Kategora’s sustainability criteria, the development will include measures for energy efficiency and responsible resource use, including solar panels, aerothermal systems, high-efficiency lighting and rainwater collection. Kategora expects the complex to gain BREEAM sustainability certification and a high energy rating.

For investors, the Kategora model involves buying an apartment and handing over management and maintenance, making it part of the complex’s shared operation. Kora Living will manage operations, guest services and upkeep. This unified approach means the accommodation can be marketed and hotel services provided to common standards, without owners having to deal with day-to-day tasks.

Agustín Orcasitas, the company’s Chief Commercial Officer, said: “The appeal of an investment also lies in the fundamentals behind its return: the choice of destination, the ability to attract demand and the quality of the accommodation. Kategora Malak brings together 20 years of experience in developing and managing property assets with the knowledge we’ve gained operating on the Costa del Sol.”

Orcasitas adds that this experience lets the company turn what guests value into concrete decisions about the product and how it is sold. “That’s where the link lies between the quality of the stay and the results for the investor: accommodation that meets its customers’ expectations is better placed to generate occupancy, build loyalty and stay competitive.”

Income combines a fixed payment, settled quarterly, with a variable part linked to the annual results of the business, in line with the contract terms and subject to external audit. Owners can view documents and track their investment's progress through the Kategora App, and access the Kora Rewards loyalty programme, with special deals and discounts across all Kora Living complexes.

The launch coincides with a significant year for the company, which is celebrating 20 years in 2026. Kategora operates seven complexes and has 23 projects under development. In 2025, its operating hotels achieved returns of more than nine per cent.