Meliá Hotels International and Rafa Nadal have an agreement for some 20 Zel hotels.
Mandarin Oriental Punta Negra, Mallorca will feature 131 guestrooms, including 44 suites.
Balearic hotels recorded 74.2 per cent occupancy last year.
The goal is for 20 Zel hotels over the next four to five years.
Demand for all-inclusive has tended to rise when there are economic difficulties.
The law stipulates that 50% of hotel conversion to residential accommodation must be for social housing.
The Balearics rate very highly in terms of health security, air connectivity and quality.