Branding Malta’s hotels: Diversification, global names and the next chapter
For sixty years, hotels have been the scaffolding of Malta’s tourism success. But with record arrivals, planning reforms, and global brands circling the islands, the game is changing fast. Justin Mizzi (QP) and Kris Bartolo (Zampa Partners) trace how Malta’s hotel landscape has evolved – and why the next era will be defined less by room counts and more by brand, experience, and value.
Malta’s hospitality sector is at a crossroads
For more than six decades, Malta’s hospitality industry has been a central pillar of national economic development, evolving from modest origins in the mid-1960s into a mature, diversified tourism ecosystem. Visitor arrivals in 2025 are once again expected to break records, edging close to the Malta Vision 2050 Strategy’s target of 4.5 million visitors by 2035.
This success, however, brings the sector to a critical juncture. Concerns around saturation and carrying capacity have become prominent, highlighted in The Malta Chamber’s 2021 report, Rediscover and the MHRA–Deloitte Carrying Capacity Study in 2022. More recently, Finance Minister Clyde Caruana echoed these concerns, cautioning that Malta may be approaching its tourism limits.
As international competition intensifies and traveller expectations evolve, the market is shifting from a growth-driven model toward one centred on quality, differentiation, and sustainability. Today’s travellers seek curated experiences, elevated design, environmental responsibility, and consistent service excellence. These trends are increasingly reflected in the arrival of prestigious global hotel brands to Malta.
Government policy is also aligning with this recalibration. Proposed reforms - currently under consultation - introduce caps on hotel size and restrict height extensions, reinforcing a move away from capacity expansion and towards safeguarding destination equity. Complemented by the National Tourism Strategy and the Malta 2050 Vision, these measures underscore a strategic pivot: from maximising volume to enhancing value.
Despite ongoing debate and frequent negative sentiment surrounding the sector, investor confidence in Malta’s long-term repositioning remains strong. Recent proposals - such as Six Senses for the new Comino Hotel, Nobu for Valletta’s Evans Building, and Accor’s Fairmont, Emblems, and Sofitel brands at the Villa Rosa development - signal that both international names and seasoned local investors recognise Malta’s renewed potential.
Exploring the history and development of hotels and hotel brands in Malta provides valuable insight into the market’s past trajectory and the emerging focus on higher-value tourism in the years ahead.
First era of hotel brands and hotels: 1960s to 1970s
Although hotels existed in Malta before the 1960s, including The Phoenicia, the British Hotel, and the Xara Palace, the modern hotel industry truly emerged during this decade. The period coincided with rising international air travel, Malta’s independence, and the first coordinated efforts to develop a tourism economy, which included significant tax credits for developments of hotels with more than 150 keys. Milestones included the establishment of the Malta Hotels and Restaurants Association in 1958 and the launch of the national airline in 1973. This era represented the exploration and early involvement stages of the Tourism Area Life Cycle, laying the groundwork for what would become a central pillar of the Maltese economy.
Both local and foreign entrepreneurs began shaping the new hospitality landscape. Many of today’s familiar four-star coastal hotels - such as the Ramla Bay, Dolmen, Cavallieri, Preluna, Excelsior, Comino, Paradise Bay, Selmun, and Mellieħa Bay Hotels - were founded during this period, though in much smaller forms, with none exceeding 200 keys.
A standout success was Corinthia. Beginning with the Attard Hotel in 1968, it expanded from a single property into Malta’s leading homegrown hospitality group, eventually building a global presence and elevating the country’s reputation.
International brands also started recognising Malta’s potential, about two decades after similar trends abroad. The Sheraton (later redeveloped as the Westin), the original Hilton (rebuilt in the late 1990s), and the Holiday Inn in Sliema signalled the arrival of major global operators. These five-star properties raised service standards and strengthened Malta’s international positioning.
This first era was defined by steady investment, the formation of early hotel clusters (primarily the St. Julian’s, St. Paul’s Bay, and Mellieha areas), and the beginnings of Malta’s identity as a Mediterranean destination. While capacity and infrastructure were still limited, the strategic groundwork laid during this period paved the way for the larger expansion cycles and the growing diversity of brands that characterised the decades that followed.
Second era of brands and hotels: Late 1980s to early 2000s expansion
After a slowdown in the early to mid-1980s, Malta’s hotel sector entered a new phase of expansion in the late 1980s, driven by economic liberalisation, infrastructure upgrades, and growing international visibility. The expansion of Malta International Airport in 1992 greatly improved accessibility, while the establishment of the Malta Tourism Authority in 1999 marked the start of more coordinated marketing efforts. Together, these developments fuelled stronger demand and attracted both local investors and global hotel brands.
This period saw the arrival of several prominent operators that reshaped Malta’s standing in the Mediterranean market. Although the Holiday Inn closed during this time, many established hotels underwent major refurbishments or full-scale redevelopments. Notable transformations included the Westin Dragonara Hotel, which replaced the former Sheraton, and the new Hilton, ushering in a wave of larger hotels with more than 400 keys.
Additional international brands entered the market, reinforcing Malta’s ambitions at the higher end of the regional tourism spectrum. Radisson, InterContinental, and Kempinski were among the most significant newcomers.
Kempinski’s arrival in Gozo in 1999, along with the renovation of the Xara Palace and its later joining of Relais & Châteaux in 2001, introduced a deeper luxury presence and showcased investor confidence beyond Malta’s main island.
Collectively, these developments marked a clear transition from the island’s early industry formation to a more mature and competitive phase. Hotel supply expanded substantially, international brand representation grew, and Malta strengthened its position as a credible destination within the Mediterranean hospitality landscape.
Third era of brands and hotels: Late 2000s to mid-2020s: Brand Boom and Diversification
The third significant development phase - continuing to this day - began in the late 2000s, following Malta’s accession to the EU in 2004 and the rapid transformation of global travel dynamics. The rise of online travel agencies, the growth of low-cost airlines, and a surge in international connectivity significantly broadened Malta’s reach. Combined with stronger destination marketing by the Malta Tourism Authority and more flexible planning policies introduced in the mid-2010s, the country saw an unprecedented wave of hotel development (whether new builds or extensions), with some new properties exceeding 600 keys.
This era ushered in a substantial influx of international brands, particularly after 2017. New entrants included ME by Meliá, Voco, DoubleTree by Hilton (replacing the Dolmen), Barceló, Mercure, Best Western, Novotel, Marriott (replacing Le Méridien), and Hyatt, among others. Unlike earlier eras, when brands were primarily limited to the upper- and luxury-market segments, international affiliations now span all market segments. In the mid-scale tier, brands such as Holiday Inn Express (2017) and Ibis (2021) were among the first to achieve notable international brand status.
Affiliations also became increasingly relevant for existing properties. Corinthia joined the Global Hotel Alliance in 2014; Phoenicia joined Leading Hotels of the World in 2016; and the Cavallieri joined the Radisson Individuals collection in 2020. These moves reflected a broader trend toward leveraging global networks for distribution, visibility, and service consistency.
Local hotel groups also rose to prominence during this period. Corinthia continued its international expansion (starting in the previous era in the late 1980s). It launched a new brand (Verdi Hotels in 2024), while homegrown groups and brands such as AX, DB, ST, and the Neu Collection gained traction by investing in quality, brand identity, and operational sophistication. The recent opening of the Novotel by the ST Group illustrates how domestic operators increasingly blend local ownership with international brand partnerships.
Collectively, this era marked Malta’s transition into a highly diversified and competitive hospitality market. Supply grew rapidly, international brand presence expanded, and further openings - including Moxy, Ruby, and Hard Rock - are expected in 2026, showing no signs of the sector slowing down.
However, this boom, which also coincided with a property boom, also exposed growing pains: capacity pressures, infrastructure strain, and rising concerns about long-term sustainability.
These dynamics set the stage for the next chapter in Malta’s tourism evolution - one defined by consolidation, strategic repositioning, and a shift from volume toward value. As supply continues to increase, hotels face intensifying pressure to refine their brand identity, elevate service standards, and deliver distinctive guest experiences.
This shift raises fundamental questions: What does a hotel brand truly represent? How does it shape guest expectations? And why is it good for business?
The following section explores the concept of branding in hospitality and its role in shaping the future of Malta’s hotel sector.
Understanding hotel brands
A hotel brand is more than a name or logo - it is a promise of consistency, quality, and distinctive guest experience. For guests, it provides a shortcut to trust; for operators and investors, it offers operational frameworks, global visibility, and commercial advantages.
At their core, hotel brands fulfil three key functions:
Signalling quality and consistency: Guests book a branded property with confidence, knowing that service standards, amenities, and experiences will meet expectations, reducing perceived risk.
Creating emotional connection: Hospitality is about more than accommodation; intense brands craft experiences and narratives that resonate with guest lifestyles and aspirations, fostering loyalty beyond price.
Driving commercial performance: Affiliation with a global brand grants access to distribution networks, loyalty programmes, and marketing platforms. While partnerships come with costs, they often translate into the following advantages: higher occupancy, stronger ADRs, reduced execution and operational risk, improved margins, and enhanced asset value for investors.
Brands can be classified by drivers (from unique, quality-focused to value-oriented), style (lifestyle vs. classic), and segment (ultimate luxury to budget). As noted throughout this article, in Malta, strategies vary: some hotels build homegrown brand equity, while others align with international affiliations or brands through management or franchise agreements.
Regardless of the model, strong branding has become essential for differentiation, guest loyalty, and long-term value creation - especially as supply continues to expand, foreign competition increases, and traveller expectations evolve.
The next era of brands and hotels in Malta
While Malta’s hotel stock approaches capacity and the quality of the built environment remains uneven, strategic opportunities persist. Seasonality is no longer a significant constraint, new connectivity - including proposed direct flights to New York - enhances accessibility, and the island’s growing high-end offerings, from Michelin-starred dining to lifestyle experiences, strengthen its appeal.
This environment paves the way for ultra-luxury and upper-upscale brands such as Six Senses to establish a presence, further elevating Malta’s global profile. As the market enters a mature, consolidation-driven phase, luxury, quality, and differentiation define both investment strategy and destination positioning.
The next wave of openings, if realised, will do more than add rooms - they will create lifestyle statements, enhance Malta’s identity, and keep its place in the international hospitality hierarchy. This is vital as the success of the next era will not be defined by the growth of hotel stock or inbound tourists, but by growth in tourist spending and satisfaction.
In this landscape, successful operators will focus not only on physical assets but also on the intangible: the brand story, emotional resonance, and promise of memorable experiences.
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