articles | 06 August 2019

Hotel projects worth €780m to upgrade tourism sector

The record boom in Cyprus tourist arrivals of recent years has encouraged owners to expand their hotels, while attracting branded newcomers to invest millions in the island’s hotel industry.

Latest data from the Cyprus Statistical Service shows the upward trend in the number of new hotel units continued between January - April 2019 as 10 new permits were issued for the construction of hotels worth of €530 million compared to approximately €40 million worth of projects in the corresponding period last year.

However, it should be noted that the value of new hotel projects is due to the issuance of planning permission for the integrated casino resort in Limassol – Europe’s biggest.

According to a recent KPMG report, new hotel projects worth a total of €250 million were launched in 2018, corresponding to 20% of the value of all major building projects and 12% of building permits issued in 2018.

Overall, in the last 10 years the number of three star and above hotels has increased by 7% with an additional 13 new units, mainly in the areas of Paphos and Famagusta with available rooms increasing by 11% and 16% respectively in these areas.

KPMG estimates that this upward trend will continue with the construction of the Melco casino in Limassol and other five-star hotels under construction in the town and Famagusta district.

Construction of the City of Dreams Mediterranean casino in Limassol will add 1000 new beds and is expected to be completed in 2021.

Construction of the Chrysomare Beach Hotel in Ayia Napa will add another 640 rooms, while Sofitel Cyprus Limassol will add another 490 and the Sun City Resort in Famagusta 460 extra beds.

Meanwhile, Nicosia, Larnaca and Paphos are also seeing their share of new hotels as a number of new hotel projects are either underway or in the pipeline.

Source: Financial Mirror


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