Driftwood Boutique Hotel
Driftwood is proposing the development of a high-end boutique hotel in the historic center of Mijas Pueblo, Spain. This project involves the construction of 12 luxury suites, a rooftop terrace with Mediterranean views, a private guest pool, a patio brunch café, and the potential for underground parking.
The hotel will deliver concierge-level hospitality, exclusive cultural experiences, and refined Mediterranean design aligned with the Driftwood brand.
The hotel will deliver concierge-level hospitality, exclusive cultural experiences, and refined Mediterranean design aligned with the Driftwood brand.
With a projected development cost of €2.6 million and a 12–18 month planning and permitting timeline, we are seeking a strategic partner with experience in business development and hospitality to join us in bringing this vision to life.
Vision & Brand Positioning
The Driftwood Boutique Hotel represents a strategic extension of our brand design and hospitality vision. The goal is to develop a highly curated, design-forward hotel that offers a bespoke guest experience while maintaining operational efficiency and longterm value. The property will blend Mediterranean simplicity with elevated service and modern amenities designed to meet the expectations of today's discerning traveler.
Equally important is the hotel's relationship to its setting. This project is rooted in a deep respect for the cultural heritage of Mijas Pueblo. Every element—from architectural finishes to guest programming—will reflect the character of the village and offer an immersive, place-based experience that feels both authentic and refined.
In addition to overnight stays, the hotel is envisioned as a venue for curated events, community gatherings, and cultural programming which will create opportunities for meaningful connection between guests and locals. Our belief is that exceptional hospitality welcomes not only the traveler, but the village that makes the experience possible.
Market Opportunity
Mijas Pueblo is one of the most visited whitewashed villages in Spain, known for its cobblestone streets, sweeping sea views, and preserved Andalusian charm. The village sits at the intersection of cultural relevance and accessibility—less than 30 minutes from Málaga International Airport and the beaches of the Costa del Sol.
Despite steady and growing visitor demand, the village lacks luxury accommodations that align with the future of hospitality in the region. As regulations on short-term rentals continue to tighten across Andalusia, the demand for boutique hotels is rising—offering a more sustainable, high-quality alternative for both municipalities and travelers. The Driftwood Boutique Hotel will be one of only two walkable boutique hotels in Mijas Pueblo, and the only one positioned to deliver a fully integrated experience—elevated design, personalized service, and immersive cultural engagement. Built on the last undeveloped parcel in the historic center, privately owned by the founders, this project presents a rare opportunity to introduce an upscale hospitality asset in an architecturally preserved setting.
Regional tourism dynamics:
Andalusia welcomed approximately 36.2 million visitors in 2024, a 5.5% increase over the previous year, generating nearly €29 billion in tourism revenue.
Málaga province reported a 78% average hotel occupancy rate in 2024, with higher rates in heritage villages like Mijas.
Hotel occupancy in Mijas exceeded 92% in May and June 2025, making it one of the top-performing destinations in the region.
Development Budget & Use of Proceeds
The total project budget for the Driftwood Boutique Hotel is estimated at €2.6 million, inclusive of all development costs, design services, permitting, marketing, and contingency reserves. This budget reflects a turnkey delivery of the hotel—including 12 luxury suites, a rooftop terrace, guest pool, brunch café, and brand-integrated guest programming. The breakdown of use of proceeds is as follows:
This budget is based on current market rates for materials, labor, and professional services in the Málaga region. The land parcel is privately owned by the founders and will be transferred into the project at fair market value. All design and project management will be led in-house by the founding team, reducing overhead and ensuring brand alignment throughout.
Financial Projections
Hotel Room Revenue (Year 1)
Brunch Café Revenue (Year 1)
Combined Revenue and Financial Performance (Year 1)
5-Year Growth Outlook
Curated Events as an Additional Income Stream
Beyond its core revenue streams, Driftwood Boutique Hotel anticipates €25,000– €50,000 in Year 1 event revenue through private dinners, cultural workshops, and curated gatherings. These offerings will be hosted on the rooftop terrace and garden patio café which will add high-margin income while enhancing brand experience and community connection.
Ongoing Annual Operating Expenses
Year 1 Projection
This table outlines the projected operating expenses for the Driftwood Boutique Hotel in its first year. These costs cover all aspects of daily operations, from staff salaries and utilities to marketing and ongoing maintenance, ensuring a comprehensive view of the hotel's financial outlay.
These projections reflect diligent planning and market research, ensuring a realistic financial model for the hotel's first year of operation and setting a strong foundation for future profitability and sustained growth.
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Design & Guest Experience
Mediterranean Aesthetic
The Driftwood Boutique Hotel will reflect a refined interpretation of Mediterranean living —where time slows, beauty is layered, and every detail holds intention. Drawing from the whitewashed elegance of Mijas Pueblo, the interiors will blend textural simplicity with elevated materials, offering a modern, soulful expression of Andalusian tradition.
Luxury Accommodations
Guests will be welcomed into a design-forward environment rooted in earthy tones, natural light, handcrafted finishes, and a sense of ease. Each of the 12 luxury suites will be uniquely curated to feel like a private sanctuary, with thoughtful layouts, linen-draped beds, and custom furniture designed to echo the rhythm of village life.
Beyond the rooms, the hotel will feature:
Rooftop Terrace
A rooftop terrace with sweeping sea and mountain views, perfect for golden-hour aperitifs and stargazing
Private Pool
A private guest pool tucked into a walled garden, offering serenity and shade
Brunch Café
A brunch café that serves as both a culinary destination and a gathering space infused with seasonal menus, fresh flowers, and timeless charm
Cultural Programming
Cultural programming such as artist residencies, olive oil tastings, and intimate acoustic sets, bringing guests into the heart of local life
This is not a typical hotel experience—it is a destination where beauty, community, and intention come together—bridging visitor and village in a shared experience of place.
The Founding Team
Driftwood was founded by husband-and-wife team Carolyn and Justin Lubbe, whose shared vision is to create spaces that are not only beautiful, but thoughtfully inspired by and integrated into their surroundings. After over a decade of professional experience and creative collaboration, they returned to Mijas Pueblo—where their journey first began—to launch a new chapter of the Driftwood brand rooted in restoration, cultural immersion, and an intentional community-centered lifestyle.
Together, they bring complementary skills to the development and operation of the Driftwood Boutique Hotel:
Carolyn Lubbe
Interior Designer & Creative Director
Carolyn is a university-educated interior designer with over 15 years of experience in residential and hospitality design. Her work has been featured in Architectural Digest, and she is known for creating interiors that are both timeless and highly functional. With a deep sensitivity to materials, flow, and spatial storytelling, Carolyn will lead the full design direction of the hotel—including an emphasis on architectural detailing, interior selections, furniture curation, and the overall guest experience.
Justin Lubbe
Business & Operations Strategist
Justin brings over 15 years of experience in business development, finance, and operational management, with a strong track record in project execution and strategic planning. His expertise in optimizing processes and fostering strong partnerships will be crucial in building a sustainable and efficient operation for the Driftwood Boutique Hotel. Justin will oversee all aspects of financial management, operational logistics, guest services, and long-term business strategy to ensure a seamless and high-quality experience for all visitors.
Together, Carolyn and Justin's complementary expertise in design and business operations forms the backbone of the Driftwood Boutique Hotel, ensuring a harmonious blend of aesthetic excellence and operational efficiency. Their combined vision is to create a unique and memorable experience for every guest, rooted in the spirit of Mijas Pueblo and the authentic charm of the region.
Project Timeline
Design Development
Q3 2025 – Q1 2026
Finalize architectural plans, interior design concept, and technical documentation
Permitting & Approvals
Q1 2026 – Q2 2027
Secure all local and regional permits required for historic center construction
Construction & Site Prep
Q3 2027 – Q2 2028
Groundbreaking, site preparation, structural build, and exterior completion
Interior Build-Out & FFE
Q1 2028 – Q2 2028
Installation of finishes, furnishings, and café + guest amenities
Pre-Launch & Soft Opening
Q1 2028 – Q2 2028
Staff hiring, systems implementation, soft launch of café and limited guest stays
Official Opening
Summer 2028
Grand opening of full hotel operations and event
Investor Return Scenarios
Clear Returns. Shared Success.
The Driftwood Boutique Hotel is structured to deliver strong, transparent returns while preserving brand integrity and operational excellence. Our financial model prioritizes investor security and long-term value.
Key Investor Considerations
Balanced Partnership (60% Equity)
- Attractive IRR at 28.8% over 5 years.
- Strong annual cash flow starting Year 1.
- Significant upside at exit (€6.95M projected).
- Founders retain meaningful stake, ensuring long-term alignment.
Investor Safeguards
- Preferred Return: Target 8–10% annually, paid before founder profit share.
- Capital Return Priority: Initial investment repaid before any equity profit splits.
- Downside Protection: Modeled 10–20% ADR/occupancy drop still preserves capital and delivers positive cash flow.
- Exit Strategy: Target sale/refinance in 5–7 years at 8% cap rate.
All projections are based on Year 1 NOI of €681,600, 8% annual NOI growth, and 8% exit cap rate. Figures are estimates and subject to change based on market conditions and operational performance.
Exit Strategy
Realistic Growth & Strong Returns
We project sustainable gains by starting with a Year 1 ADR of €400, growing 3% annually, with stabilized occupancy at 75%. This approach keeps targets achievable while delivering attractive returns.
Projected Exit Valuation (Year 5, NOI €649K)
Investor 60% Equity Share represents the proportion of net sale proceeds aligned with a 60% equity position in the project.
Assumes €400 ADR in Year 1 with 3% annual growth, 75% stabilized occupancy, 38% NOI margin, plus café and ancillary revenue.
Risk Identification, Investor Impact & Mitigation
We care about protecting this project and its long-term success. Our plans are built with the foresight to navigate challenges wisely, ensuring capital is safeguarded, returns remain steady, and every guest experience reflects the Driftwood standard.
These measures form the backbone of our operational and financial strategy, ensuring resilience in a dynamic market and alignment with Driftwood’s long-term vision.
Final Invitation
This is a rare opportunity to help shape a landmark hospitality project in one of southern Spain's most sought-after historic villages.
The Driftwood Boutique Hotel is designed to meet a clear gap in the market—offering elevated accommodations that celebrate local culture while delivering long-term value. More than just a profitable venture, this project is rooted in thoughtful design, community connection, and a commitment to honoring the spirit of place.
If this vision resonates, we invite you to connect. Together, we can bring this to life.
Connect with Us
We welcome your inquiries and look forward to discussing how you can be part of the Driftwood Boutique Hotel success story. Please reach out to our team with any questions or to schedule a meeting.