TOURISM BUSINESS

Hotels mushroom on Mykonos

hotels-mushroom-on-mykonos

Despite the pandemic and the global crisis in tourism, Mykonos, the wildly popular Greek island in the Cyclades, continues to be an investment magnet for the construction of super-luxurious hotels.

The area of Kalo Livadi alone is witnessing the construction or preparation work for three hotel complexes, with a total budget of more than 200 million euros. Another €12 million will be invested in two more hotels, at the neighboring beach of Kalafatis, while Elia, just west of Kalo Livadi, will host a new five-star unit.

Dozens of smaller or larger projects are also under way across the picturesque island, including a new €40 million investment by the Daktylidis family at Platys Gialos, following the successful venture of Noisis at Psarrou and Ornos.

Mykonos’ capacity to support what elsewhere would be seen as excessive supply, and its global acknowledgement as a high-standard destination, form the basis of all those investments. Kalo Livadi in particular has seen investments soar in recent years.

London & Regional Properties, in cooperation with Intrakat and Intradevelopment, are close to completing a luxurious complex at a 100,000-square meter plot at Kalo Livadi. It will bring together 75 suites and 12 villas, two restaurants and a spa, and is expected to cost up to €100 million.

At the same time, AGC Equity Partners, which has also acquired the Astir Palace in Vouliagmeni on Athens’ southern coast, is proceeding with the construction of The Mykonos Project at Karapetis, west of the bay of Kalo Livadi. This is a €60 million investment in a hotel with independent houses too, stores, restaurants, a port and a helipad.

Grivalia Hospitality is investing another €60 million along with Frontisa. Project Blue, as the investors call the complex planned, will constitute a hotel development with 150 rooms and suites at a 90,000-sq.m. plot at Fera Gremna-Vatoudia.

According to data by Trivago and the Institute of the Greek Tourism Confederation (INSETE), the average rate per night on Mykonos stood at €705 in July 2019, with little change reported in 2020. This points to the major profit margins the above investments stand to produce once the market reverts to normal.