There have been offers to buy the Hotel Formentor on Pollensa Bay. | Miquel A. Cañellas

On Saturday, the Spanish business newspaper Cinco Días reported that the Hotel Formentor had been sold to an investment fund, Emin Capital, and would operate as a Four Seasons establishment, the Canadian hotel group being on the point of opening its first hotel in Spain - one in Madrid.

Grupo Barceló, which has owned the hotel since 2006 and operates it under the group's Royal Hideaway luxury brand, has denied that the hotel has been sold. A statement confirms that there is a good deal of interest and that offers have been received. While there is no special interest in wishing to sell the hotel, "we will obviously listen to any approach that is made to us and decide accordingly".

Pollensa's mayor, Tomeu Cifre, says that any sale would be "very significant" for Pollensa but believes that no sale has yet been agreed. He adds that he has asked Barceló about plans and that the company informed him that it was still analysing offers and intends to reopen this year as a Barceló hotel.

Whatever happens, a new owner would have limited scope for development. The hotel has 127 rooms and has 250 authorised places. The idea has been for this number to be increased to 350, but a court order suspended a town hall planning regulation that would permit this.