Work has resumed inside Ibiza's Hotel Corso despite the suspension of the hotel's main urban-planning licence, reopening a new chapter in the controversial project that includes plans for a large nightlife venue linked to the future relocation of Lío Ibiza.

The latest works are reportedly being carried out under a separate declaration of responsibility submitted by the promoter, rather than under the suspended building licence.

The distinction is important. The Ayuntamiento de Eivissa suspended urban-planning licence 11/2026 on September 17 after municipal technical services identified an excess in the permitted increase in occupancy. That suspension remains in force.

Interior works have restarted

According to the latest reporting, workers have begun carrying out work inside the hotel, initially focusing on rooms intended to become the first pilot units of the renovation.

The wider hotel refurbishment involves more than 100 rooms.

The work is taking place inside the building and is therefore not necessarily visible from outside the property in s'Illa Plana.

The promoter has submitted a declaration of responsibility for the works. Unlike a conventional building licence, this procedure allows certain works to begin without waiting for a prior municipal authorisation, provided that the works fall within the activities permitted under the applicable regulations.

Municipal authorities retain the ability to inspect the works afterwards and order them to stop if they do not comply with the applicable rules.

The main construction licence remains suspended

The current situation does not mean that the suspended licence has been restored.

The Ayuntamiento de Eivissa suspended licence 11/2026 on September 17 following concerns raised by its technical services over the project's occupancy parameters.

The municipal decision stated that works covered by that licence could not be initiated or carried out while the suspension remained in effect. Cadena SER also reported that the suspension followed objections raised by residents of s'Illa Plana.

The issue therefore centres on which specific works can legally proceed under the newly submitted declaration of responsibility and which require the suspended licence.

The latest report states that the Ayuntamiento had not responded by publication time to questions about exactly which works the declaration covers or whether municipal planning inspectors had already verified that the ongoing work complies with the requirements for this simplified procedure.

Why was the licence suspended?

The suspension followed the discovery by municipal technical services that the project exceeded the maximum permitted increase in occupancy under the regulatory framework used to approve the refurbishment.

The exact extent of the excess had not yet been quantified in the latest reporting.

The issue is significant because the licence was granted under the special framework established by Law 2/2020 to facilitate the modernisation of tourist establishments. The Consell d'Eivissa has questioned aspects of the project as part of its own administrative review.

A modified project has also been submitted

The latest development follows another move by the promoter.

On September 29, the promoter submitted a modified project to the Ayuntamiento de Eivissa designed to reduce the occupancy parameter that triggered the suspension.

Municipal councillor Juan Flores confirmed the submission to residents following a municipal plenary session.

However, the modification faces an unresolved administrative issue because the Consell has previously maintained that correcting this parameter would require a new project and a new report rather than simply modifying the existing authorisation.

That means the future of the main expansion works remains unresolved.

What about the planned Lío Ibiza move?

The Hotel Corso project has been closely followed because it is intended to accommodate the future relocation of Lío Ibiza.

However, the latest information indicates that the expansion works required for the planned move cannot currently proceed under the suspended licence.

According to the latest report, the timetable now makes a 2027 relocation unfeasible, at least on the basis of the current situation.

This should not be interpreted as a permanent cancellation of the relocation. The administrative and legal process surrounding the project remains ongoing.

The project remains under scrutiny

The Hotel Corso development has accumulated several unresolved issues.

These include the suspended urban-planning licence, the occupancy discrepancy identified by municipal technical services, an ongoing review of the tourism report at the Consell, and legal challenges before the courts.

There has also been a separate dispute over the historical activity authorisations associated with the property.

In August, a municipal report identified a 1997 licence for a dance hall as an existing title associated with the hotel, while also confirming that the municipal records did not contain a specific authorisation for a party-room activity. The Consell subsequently opened a further period for interested parties to submit observations.

The company behind Lío Ibiza has previously maintained that the relocation project is being developed within the applicable administrative and planning framework and in compliance with the relevant legal, technical and environmental requirements.

What happens next?

For now, the situation remains in two separate tracks.

The main licence allowing the broader refurbishment and expansion remains suspended, while the promoter has used a declaration of responsibility for a more limited set of interior works.

At the same time, the modified project submitted in September is part of the attempt to address the occupancy issue that led to the suspension.

The Ayuntamiento must still determine how the new documentation fits within the applicable planning regulations, while the wider administrative and legal challenges remain unresolved.

For Ibiza, the outcome will determine whether the Hotel Corso can eventually proceed with the planned transformation and whether Lío Ibiza can ultimately relocate to the property.