Ábalos' vacation home and the adjacent strip club will be converted into a hotel.

The house became famous on April 9, 2025, but the nightclub had been so for much longer. On that date, which will soon mark a year, the Central Operative Unit (UCO) of the Civil Guard delivered a report to Supreme Court magistrate Leopoldo Puente, indicating that former minister José Luis Ábalos had enjoyed free accommodation in Marbella. The residence was located next to the Milady Palace, a VIP nightclub known both inside and outside of Marbella, which had already been in the news on several occasions, from recordings that had leaked to the public, such as that of the president of an English football team who boasted of having used club money for personal use, to incidents like the one on January 21, 2013, when one of its three owners, the Franco-Moroccan David Abidriss, was gunned down by a hitman with a Kalashnikov submachine gun as he was leaving his house in Estepona.

The house and the now permanently closed famous luxury nightclub are only separated by some bushes; a simple division that explains the fact that both spaces actually form part of a whole: a single plot, measuring 4,881.88 square meters, on Palacio Alhambra street, in the Villa Parra Palomeras development, which is now on its way to becoming a hotel. According to the UCO report, Ábalos stayed in that house between August 12 and 23, 2020, at a cost of 9,800 euros, according to the rental contract signed with a real estate agency, a cost that the former minister allegedly did not pay, which the Civil Guard unit attributed to compensation for the rescue of Air Europa.

The City Council has approved the declaration of convenience and opportunity for the project, and an increase in buildability will be allowed

Be that as it may, the house from Ábalos's first vacation after the pandemic lockdown and the Milady Palace are now on their way to joining the growing hotel industry in Marbella. For now, the City Council has approved a declaration of convenience and opportunity, expressing the Corporation's interest in processing this initiative for its conversion into a hotel.

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This is a file for the proposal of delimitation for an Urban Transformation Action for Urban Improvement (ATU-MU) on this plot classified in the General Urban Planning Plan of 1986 as urban land with single-family residential use, except for 480 square meters of parks and gardens. The project contemplates an increase in buildability (from 0.30 to 0.55 m2t/m2s) and its promoters must cede land for a public road and execute and condition the perimeter of the plot with sidewalks.

The City Council initially gives its approval to continue processing the initiative as it meets the objectives of "promoting a compact and efficient city model"; increasing the tourist offer; "promoting the diversity of uses" on urban land; "optimizing" the use of consolidated urban land and "ensuring urban, functional, and environmental integration."