The Jerma Palace Hotel was built on a headland called il-Ħamrija, close to the 17th-century Saint Thomas Tower.

The land originally belonged to Franciscan Conventuals and Ivan Burridge, who sold it to San Tumas Holdings.

[3] The Jerma Palace was the largest hotel in the south of Malta,[4] and its opening contributed to transforming Marsaskala from a traditional fishing village to a small resort.

[11] Following a request by the Marsaskala Local Council[12] and the issue of an enforcement notice,[13] on 20 August 2016 the Planning Authority ordered the hotel's owners to demolish the building.

[14] The same year, PN local councillor Charlot Cassar suggested that the site be bought by the Maltese government and turned into an open space for public enjoyment.

[11] The project was withdrawn after Camilleri had sold the site to Gozitan property magnate Joseph Portelli for €90 million in summer 2019.

Seven NGOs initiated legal action against the decision, deeming that the Planning Authority had "arbitrarily increased the area of the development brief".

[17] Moviment Graffitti denounced the risk of further congestion in the area and the lack of respect for a historic site like Saint Thomas Tower.

[20] In March 2020, the music video for All of my Love, the Maltese 2020 Eurovision Song Contest entry, was filmed onsite.