PA approves Townsquare amendments in Sliema, removes hotel

Malta's Planning Authority has approved amendments to the Townsquare development in Sliema, removing the proposed 10-storey hotel and converting that footprint to public open space, aligning the project with an October 2025 Court of Appeal judgment. The changes reinstate an earlier pavilion, reconfigure interiors to ensure all apartments meet a minimum 150-square-metre floor area and leave the 28-storey tower's height and exterior unchanged.

Planning officials classed the revisions as minor, noting they reduced the development's overall scale while increasing public open space. The site's history spans nearly two decades. A joint venture of the Ganado, Gasan, Soler and Trapani-Galea families secured approval in 2016 for a 38-storey tower, which drew opposition from residents, environmental NGOs and Sliema's local council.

In 2018, the Environment and Planning Review Tribunal cancelled the permit on grounds of inadequate social and traffic impact studies. A downsized scheme—a 28-storey tower with 159 apartments—won approval in 2019. Michael Stivala's ST Group acquired the project in 2021 for a reported €70 million.

In 2023, his team proposed expanding apartments from 159 to 234, adding the 10-storey hotel and enlarging parking and commercial space. The Planning Authority approved unanimously. Moviment Graffitti and Din l-Art Ħelwa challenged the 2023 decision.

The October 2025 Court of Appeal ruling partially upheld the objections: the hotel could not occupy designated public open space, restaurants could not be placed in residential zones and all apartments must meet the 150-square-metre requirement. The tribunal reassessed the project. In January 2026, Stivala reached a confidential settlement with 14 objectors.

He agreed to remove the hotel; they withdrew objections and pledged not to oppose future applications. Stivala described the agreement as necessary "to provide certainty to a project that had been stalled for years through multiple appeals and court proceedings." ST Group intends to file a separate application for a lifestyle business hotel within a structure originally earmarked for office use.