Following a period of precautionary suspension, the Directorate General of Cultural Heritage of the regional government has ruled that the properties lack cultural value warranting protection. This decision permits the continuation of a tourist accommodation project that will offer 260 beds in the heart of Lavapiés.

The construction license, initially granted by the Activities Agency, had been halted earlier this year after a complaint from the PSOE and several civil associations seeking to protect the building for its potential heritage value. The Madrid City Council had escalated the inquiry to the Community of Madrid, which initially stated it would seek environmental protection for the building.

Municipal sources confirm the matter is now resolved, noting that the property, located next to Nelson Mandela Square, was vandalized and had been closed for some time. The hotel project will be developed on a 400-square-meter plot with 1,800 square meters of buildable area.

The building once housed the iconic Senegalese restaurant Baobab, which closed in 2020. Organizations and political parties attempted to halt the demolition, arguing it could be one of the few examples of traditional housing from the Villa de Madrid, dating back at least to the 17th century, and thus held significant urban value.