What's Happening?
Premia Properties, a Greek real estate investment firm, has announced an agreement to acquire two hotels on the Greek island of Kos. The acquisition includes the five-star Gaia Palace Hotel and the four-star Gaia Royal Hotel, which together offer a total
of 440 rooms. Both properties are located near the beach in Mastichari and feature amenities such as restaurants, bars, and swimming pools. Premia Properties plans to invest in renovations, with completion expected by May 2027. The total investment, including renovation costs, is estimated at €73 million. The Swedish operator Nordic Leisure Travel Group will manage the hotels under a long-term, 20-year, triple-net lease.
Why It's Important?
This acquisition is significant as it highlights the ongoing trend of investment in the hospitality sector, particularly in popular tourist destinations like Greece. The investment by Premia Properties is expected to enhance the appeal of the hotels, potentially boosting tourism and local employment. The involvement of Nordic Leisure Travel Group as the operator suggests a strategic partnership aimed at leveraging their expertise in managing leisure properties. This move could set a precedent for similar investments in the region, contributing to the economic development of the area.
What's Next?
Following the acquisition, Premia Properties will focus on the renovation of the hotels, with a target completion date in 2027. The renovations are expected to upgrade the facilities and improve the overall guest experience. The long-term lease agreement with Nordic Leisure Travel Group indicates a stable operational future for the properties. Stakeholders in the tourism and hospitality industry will likely monitor the progress of this investment, as it may influence future investment decisions in the region.
