A particularly advantageous agreement has been reached by SODAP, the largest wine industry receiving grapes in the Paphos district, paving the way for the construction of a five-star hotel that will join the Kanika Hotels & Resorts portfolio.
The KANIKA Group of Companies recently announced that a subsidiary of the Group signed on Wednesday, 21 January, 2026, under terms and conditions, a long-term lease agreement for a plot of land, owned by the Cooperative Organisation for the Distribution of Viticultural Products (S.O.D.A.P.) Ltd, for a period of 66 years.
The plot, which is located in a prime coastal area of Kato Paphos, on the well-known SODAP beach, has a total area of 41,160 square meters.
This was preceded by the Shareholders' Meeting of SODAP last Sunday, which approved the agreement worth tens of millions of euros between the wine industry and a subsidiary of the Kanika Group for the lease of the Organisation's property in question.
The development of this plot, which remained unexploited, is expected to essentially free up the hands of SODAP, significantly boosting its revenues. Moreover, upon the expiration of the agreement, a five-star hotel unit of high-quality standards will be delivered to the Paphos wine industry.
On the other hand, Kanika Hotels & Resorts is further consolidating its presence in the Kato Paphos area with the upcoming hotel unit, as it already manages the luxury hotels Amavi, Olympic Lagoon Resorts Paphos and Alexander the Great, which operate on the coastline in close proximity to each other.
As InBusiness News has been informed, Kanika had shown interest in exploiting the huge plot in the past, but the efforts did not bear fruit. The previous long-term tenant of the plot was the Kourousiis company, which did not proceed with its exploitation.
The terms of the agreement and the significant increase in revenue
After the explanation of the terms of the agreement and the clarifications given in the context of the SODAP Shareholders' Meeting, it was decided that the long-term rental of the coastal plot in Kato Paphos, where Kanika is expected to build a five-star hotel, will contribute to increasing the Organisation's revenues in the long term, while simultaneously strengthening the region's tourism product.
According to what has been made public, the lease agreement for the tourist plot in Kato Paphos provides that for the first 15 years, SODAP will receive an annual rent of €800,000 with an annual increase of 2.5%, while from the 16th year until the end of the contract, the annual lease amount doubles to €1.6 million, with an annual increase of 2.5%. In addition, SODAP will receive a bonus of €500,000 upon signing the agreement.
New five-star hotel – The estimated amount of the investment
Within the framework of the agreement signed, Kanika Hotels & Resorts has committed to the construction of a five-star hotel with at least 285 rooms, with the total investment cost estimated at €53 million.
It is also recalled that new developments in the hotel industry of Cyprus are expected to be brought about by the entry into the Cypriot market of the American giant Blackstone, which is proceeding with the acquisition of the five-star hotel, Olympic Lagoon Resorts Paphos, managed by Kanika.
The arrival and activity in the Cypriot market of the American fund, through Querin Limited, is not expected to be limited to the acquisition of ownership of the hotel unit in question.
Read also: Kanika: Deal with SODAP paves the way for a five-star 285-room hotel in Kato Paphos
(Source: InBusinessNews)
