Jerma Palace Hotel: from luxury landmark to contested ruin [EN] 🇬🇧
The Jerma Palace Hotel was once the pride of southern Malta – a four-star resort that played a key role in transforming the fishing village of Marsaskala into a modern seaside destination. Today, the once-grand complex lies in ruins, surrounded by controversy, stalled redevelopment plans, and growing public opposition.
Hotel opened its doors in 1982 as an investment by the Libyan Foreign Investment Company, at a time of close diplomatic ties between Malta and Libya. It was built on a coastal headland known as il-Ħamrija, near the 17th-century Saint Thomas Tower, a historic coastal fortification. The hotel was operated by Corinthia Hotels International, and even included a presidential suite reserved for Libyan leader Muammar Gaddafi.
At the time of its opening, Jerma Palace was the largest hotel in southern Malta and played a key role in shifting Marsaskala’s identity from a quiet fishing village to an emerging tourist resort.
The hotel shut down in March 2007 and was never reopened. In the years that followed, the site deteriorated rapidly. It was stripped of all valuables – from carpets and tiles to doors and even bricks. Its walls became covered in graffiti, the structure was occupied by squatters and drug users, and the area turned into an illegal dumping ground. Multiple fires broke out in the abandoned building.
In 2016, Malta’s Planning Authority issued an order for the demolition of the derelict structure. Ironically, the building caught fire again on the very day the demolition was announced. The estimated cost of tearing down the hotel was around €1.5 million.
Controversial Redevelopment Proposals
After its closure, the site passed through several owners and saw numerous redevelopment proposals:
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2008: The hotel was sold to brothers Jeffrey and Peter Montebello. Their company, Jefpet Ltd, planned a large-scale project with a luxury hotel, apartments, and a yacht marina. However, Malta’s planning regulations, as well as a €40 million loan call-in, forced them to scale down their ambitions. The Marsaskala local council also opposed the inclusion of apartments.
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2016: New owner Charles Camilleri, through Porto Notos Ltd, proposed a controversial project involving three towers (44, 32, and 22 storeys). After heavy criticism, this was later downscaled to 12- and 13-storey blocks including residential units. In 2017, the Marsaskala local council unexpectedly reversed its earlier stance and voted in favour of the new project. The development included plans for a public park around Saint Thomas Tower, but no environmental impact assessment was ever submitted.
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2019: Camilleri sold the site to Joseph Portelli, a Gozitan property developer, for €90 million. A government-approved development brief in 2020 allowed for construction over 100,000 square meters, with 40% designated for residential use. A revised brief later reduced this to 65,000 square meters, with buildings up to 8 storeys high – still doubling the site’s footprint.
Despite no final application being filed, Portelli stated plans to build 130 apartments, a 500-room hotel, and a public square in front of Saint Thomas Tower.
Public Opposition and Legal Action
The proposed developments have drawn widespread criticism from environmental groups, heritage activists, and citizens concerned about overdevelopment, traffic congestion, and damage to a historical site. In 2020, seven NGOs filed legal action against what they called an “arbitrary expansion” of the development zone.
Moviment Graffitti and other groups also denounced the lack of transparency and public consultation in the planning process.
A Pop Culture Ruin
Despite its decay, the Jerma Palace Hotel has retained cultural relevance. In 2020, it served as the backdrop for the Eurovision music video "All of My Love", and in 2021, it appeared as a fictional alien building in the Apple TV series Foundation.
"How to find the cache"
The first task is to complete a simple puzzle (here) that will reveal the area from the attached photo and the floor of the hotel.
Got it? Great! Now you just need to come to the right place and find the room with the inscription on the wall from the photo. The cache is located in its bathroom on the right. Good luck with your search!
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