New developments in Cyprus' hotel industry are expected to be brought about by the entry of the US giant Blackstone which is proceeding with the acquisition of the five-star hotel, Olympic Lagoon Resorts Paphos.
The arrival of the global alternative asset management company's investment comes in addition to the already successful investments from other international giants in Cyprus' hospitality sector (MHV / Invel Real Estate, Fattal Hotel / Leonardo Hotels & Resorts Mediterranean, Mercure / Accor, etc.)
The US group is already significantly active in the Greek market with a broad portfolio of hotel units, including five in the Louis Group, which were acquired as part of a major deal that preceded the Covid pandemic.
The arrival and activity in the Cypriot market of the US fund, through Querin Limited, is not expected to involve only the acquisition of Olympic Lagoon Resorts Paphos, which is managed by Kanika Hotels & Resorts.
More about Blackstone
The Commission for the Protection of Competition was recently notified regarding the acquisition of the share capital of K. A. Olympic Lagoon Resort Limited by Blackstone Inc. through Querin Limited and the joint control of Olympic Lagoon Resorts Paphos by Blackstone Inc. and Kanika Group Ltd.
Blackstone is the world's largest alternative asset manager, with more than $1 trillion in assets under management. The fund serves institutional and individual investors by building strong businesses that deliver lasting value. Its portfolio includes over 12,500 real estate assets and more than 250 portfolio companies (as of the first half of 2025).
The American giant achieved profits of $417 billion for its investors by 30 September, 2025, including pension systems representing over 100 million retirees.
It also manages $288 billion in private wealth assets, providing access to private markets and institutional investors through partnerships with financial advisors.
Crucial deal with Louis, but not everything was covered
The sale of five hotel units in Greece to Blackstone was crucial for Louis at the time, even though it did not prove able to cover the enormous damage and impact left by the pandemic.
In the context of the recent Annual General Meeting, the Executive Chairman of Louis Plc, Costakis Loizou, referred to the enormous impacts of Covid, with losses for the Group exceeding €100 million.
"In 2019, we successfully proceeded with the sale of five privately owned hotel units in Greece, with the aim of decisively reducing debt and improving the financial position and cash flows of Louis Plc. The sale was completed in early 2020, that is, shortly before the outbreak of the pandemic. Thus, our plans were unfortunately overturned due to the unprecedented effects of Covid, which resulted in at least €100 million in losses for the Group. On the one hand, the sale of the five hotels was life-saving at the time it was made, but on the other hand, it was not capable of covering the enormous losses, as well as the broader effects of the pandemic," Loizou characteristically emphasised.
It is recalled that, in January 2020, Louis Plc had announced the completion of the sale and transfer of the shares of the companies that resulted from the separation of its five Greek hotel operations through a partial demerger, to real estate investment funds managed by Blackstone.
Based on Louis' announcement to the CSE at the time, the net sale price resulting from the interim accounts submitted, in accordance with the terms of the agreement, is approximately €151.3 million.
Presence in Greece
Hotel Investment Partners (HIP), which belongs to the Blackstone group, sees strong investment prospects in the Greek market.
HIP owns ten hotel units with a capacity of 2,600 rooms, including one in Athens (Grand Hyatt Athens), two in Crete, two in Zakynthos, two in Halkidiki, two in Corfu and one in Rhodes.
The hotel property portfolio began operating in Greece in 2019, acquiring five Louis hotel units.
In addition to the Grand Hyatt Athens on Syggrou Avenue, the US fund acquired two more units through HIP in 2024, one in Rhodes and one in Kassandra, Halkidiki.
On the sidelines of a hospitality forum held in November 2024, HIP's Investments Senior Director, Luis Picas, stated that Greece is a priority for the company, as it offers more investment opportunities compared to Spain, mainly due to lower selling prices and milder competition.
(Source: InBusinessNews)
