The entry into the Cypriot market of American giant Blackstone, through its ownership of the five-star hotel unit Olympic Lagoon Resorts Paphos, is anticipated to change the status quo of the island's hotels sector.
The hotel is still being managed by Kanika Hotels & Resorts, which is further consolidating its presence in the Kato Paphos area with the upcoming construction of a five-star hotel unit, following a long-term lease agreement for a plot owned by the Cooperative Organization for the Distribution of Viticultural Products (S.O.D.A.P.) Ltd for a period of 66 years, which was recently signed by a subsidiary of the Kanika Group.
Within the framework of the agreement signed with S.O.D.A.P., 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 recalled that Kanika Hotels & Resorts is strengthening its presence in the region, as it already manages the luxury hotels Amavi, Olympic Lagoon Resorts Paphos and Alexander the Great, which operate on the coastline of Kato Paphos within close proximity of each other.
Extensive renovations and reopening in the spring
It is worth noting that the arrival and activity in the Cypriot market of the US alternative asset manager Blackstone, through Querin Limited, is not expected to be limited only to Olympic Lagoon Resorts Paphos, at which extensive renovations worth more than €15 million have been underway since November 2025. The luxury hotel, which, as mentioned, is still being managed by Kanika, is expected to reopen at the end of March 2026.
It is emphasised that Blackstone is the largest alternative asset manager in the world, with more than $1 trillion in funds under management.
As InBusinessNews is aware, the Spanish Hotel Investment Partners (HIP), owner of Olympic Lagoon Resorts Paphos, which is associated with Blackstone, is accustomed to being surrounded by integrated teams in the destinations in which it operates, with the result that the exploration of other hotel units on the island is considered a given in the near or distant future.
The dynamics of HIP
Hotel Investment Partners (HIP), the largest owner of hotel resorts in Southern Europe, with over 70 hotel units and 22,000 rooms in its portfolio in Spain, Italy, Greece and Portugal, in October 2023, welcomed GIC, a global institutional investor, as a new equity partner in the business.
It is noted that HIP was founded in 2015 and was acquired by funds managed by Blackstone in 2017. GIC owns approximately 35% of HIP's shares, while funds managed by Blackstone own the majority of HIP's shares, with a percentage of approximately 65%.
GIC (Singapore's sovereign wealth fund) and Blackstone have a long-standing, active investment partnership, co - investing or transacting in global real estate, logistics and corporate deals.
(Source: InBusinessNews)
