The Barcelona City Council could be liable for nearly €109 million in compensation claims after refusing construction permits for new hotels, according to its 2025 annual accounts. The figure represents almost three-quarters of the total €152.23 million in pending litigation categorised as having a probable or possible risk of financial loss. Most of the disputed sum stems from cases where the council rejected building permits for hotel developments. These unresolved legal actions include five major claims over denied licences, with the largest demanding €88.48 million.

Praktik's Raval Hotel Plan at Centre of €88M Claim

The degree of risk assigned to these cases does not mean the council lacks legal grounds for a favourable outcome.

The highest individual claim relates to a blocked project by hotel chain Praktik, which planned two five-star hotels on adjacent plots on Peracamps and Cid streets in Ciutat Vella, near Drassanes. The company first applied for permits in 2015, before the city introduced a tourist accommodation moratorium. Local opposition arose over fears of gentrification in the lower Raval area, leading to conflict between the developer and the former administration of ex-mayor Ada Colau. Although the council maintained the project did not comply with urban planning regulations, sources from the previous government said Praktik eventually scaled back its plans. Rather than proceed with hotels, the company switched to building student residences. A construction permit was granted during Colau’s second term, and the buildings are now nearing completion, one set to open in September and the other in January. Despite this resolution, the legal battle continues. The claim focuses on alleged administrative liability over the initial refusal of major works permits. The council has declined further comment, citing ongoing proceedings. Praktik also refused to respond to media inquiries.

Beyond the Praktik case, the council faces four additional claims tied to denied hotel projects:

  • €10.21 million sought over rejection of a hotel at the intersection of Pau Claris and Gran Via
  • €7.39 million claimed due to denial of construction at number 9 on Avinguda Vilanova
  • A property conversion permit refusal leading to an unspecified claim for damages
  • €955,708.65 claimed for losses related to inability to implement hotel projects

Additionally, the council has set aside smaller provisions for other disputes: €34,441.06 for a refund claim on a 2009 three-star hotel permit deposit at Paral·lel 172, and €13,732 for allegedly undue economic activity tax payments made in 2020 by Serhs chain establishments.

Montse Escoda, Barcelona’s budget and finance manager, clarified that the classification of cases as “probable” or “possible” risk reflects financial forecasting rather than legal weakness. She stated the ratings are used to anticipate potential expenditure and do not indicate that the city’s legal team believes it lacks sufficient grounds to win in court. Total provisions for all high-risk cases amount to €19.82 million, covering four major disputes (€7.85 million) and around 200 smaller ones (€11.97 million collectively). Another €132.40 million is listed as contingent liabilities across 17 cases deemed to have only a possible chance of adverse rulings, meaning no funds have been reserved.

Reported by Jordi Ribalaygue, Clara Blanchar, Pau Rodríguez, lavanguardia.com, Oriol Solé Altimira, Sergi Franch, europapress.es, elperiodico.com.