The ST Sliema Hotel is set to be demolished and redeveloped into a four-star establishment under the Accord Mövenpick brand.

In the interim financial statement of Stivala Group Finance plc, the finance arm of ST Group, the directors Michael, Ivan and Martin John Stivala say that the demolition of the existing three-star hotel is slated to begin in the fourth quarter of 2024.

The group has been in possession of a development permit for the site since 2017, with an amendment approved in 2018. The permit was renewed for another five years in 2023 (PA/4896/23).

The new 15-storey hotel will include a large pool, gym and spa area on the site currently occupied by the Prince of Wales Apartments block on Manwel Dimech Street, as per the currently approved plans.

The main objection to the development came from a resident who pointed out that the property had been subject to an enforcement notice over its illegal encroachment onto the pavement since 2013.

The public walkway in front of ST Sliema Hotel is currently used by Gourmet Cocktail Bar & Grill.

The street canopy has since been sanctioned by a Planning Authority decision in December 2023, despite a recommendation for refusal by the case officer. That decision was appealed by residents, with the case before the Environment and Planning Review Tribunal still ongoing. The next sitting is scheduled to take place in late September.

The encroachment made national headlines earlier in 2024 when a resident applied for an encroachment permit with the Lands Authority over the very same site. The Lands Authority refused the request without providing a reason, but a subsequent Administrative Review Tribunal sentence revoked that decision, saying that the Lands Authority cannot refuse such requests without providing a valid reason. 

The case came amidst growing public backlash against the take up of public space by private enterprise – often without any permits – and authorities’ lack of enforcement on the abuse.

ST Group interim results

The real estate and hospitality group, which focuses its activities on Gżira, Sliema, Msida and St Julian’s, registered €4.5 million in profit before tax for the first half of 2024. The profit for the corresponding period of 2023 was €21 million, with the decrease attributable to sale of property in 2023 and an adjustment in expected credit losses for the year.

The ST Sliema Hotel redevelopment will mark the group’s second foray into the four-star market, with the first – the 293-room Accord Novotel Malta Sliema, nearing completion. It is scheduled to open in March 2025.