TSJCV Partially Annuls Hotel Moratorium in El Cabanyal

The court deems the Valencia City Council's measure insufficient and in violation of the Market Unity Guarantee Law.

Generic image of a judge's gavel on legal documents.
IA

Generic image of a judge's gavel on legal documents.

The Contentious-Administrative Chamber of the TSJCV has declared the moratorium preventing the processing of licenses for new hotels in Valencia's El Cabanyal-Canyamelar neighborhood partially void.

The judicial decision argues that the measure, approved by the Valencia City Council plenary on January 28, 2025, lacks sufficient basis and infringes the Market Unity Guarantee Law. The council had justified the suspension due to a 300% increase in license applications related to tourist accommodation during 2024, according to municipal data.
However, the ruling notes that in that same year, only one application for a hotel with 78 beds was submitted. The court emphasizes that the increase detected by the City Council primarily referred to tourist-use dwellings, not hotels. The Chamber considers that a single hotel application does not justify tourist pressure that would deteriorate the urban environment or harm residents' right to housing.
Furthermore, the TSJCV concludes that the Valencia plenary's agreement is null and void for violating Article 5 of Law 20/2013, which protects freedom of establishment and prevents disproportionate restrictions on economic activity. The ruling still admits a cassation appeal before the Supreme Court or the Chamber itself.

"It is not a minor or isolated risk. It is the second time in two years that courts have overturned a tourism moratorium approved by María José Catalá's government."

Papi Robles · Municipal spokesperson for Compromís per València
Compromís per València has warned of the economic risk to municipal coffers, as the ruling opens the door to claims for damages suffered by affected developers. The coalition points out that this pattern of rulings stems from a legislative approach that does not withstand judicial review and shifts the cost of error to public finances.
The party urges the local government to urgently detail the scope of the annulled moratorium: how many hotel applications were blocked, how many developers intend to claim, and what estimate the legal services have for the economic impact. They consider this information crucial for citizens to understand the consequences of the municipal tourism policy in El Cabanyal-Canyamelar.