I know the Atalaya no longer operates as a hotel, but a couple of times this year i`ve booked direct with someone working on behalf of some of the owners, i`ve tried to contact them recently but with no success.

Anybody got any idea whats happening with the Atalaya, is it being used at all?

Any news?

Check out http://www.holidayslanzarote.es
Only checked out these Apt's this week. Well kept and look well. Above is one agent for them.
Hope this helps

Just booked a week in Atalaya from Feb24th - March 3rd after staying there in Sept last year. Gr8 place to relax during the day and not far from the beach, nightlife etc. Just email these guys and they'll sort you out:
reservas@condestinolanzarote