Mitsis Hotels: Investment plan of 250 million euros to upgrade five units in Greece

An investment plan of 250 million euros with the aim of fully upgrading the Group’s hotels and resorts is being implemented in five destinations in Greece by the Mitsis Hotels group, which is expected to be completed by 2026. The renovations concern both public and private areas of the units, adding new room types, facilities, amenities and F&B outlets.

“All renovations are based on our environmental philosophy and aim to minimize our environmental impact and mitigate our carbon footprint, improving energy efficiency, resilience, sustainability and biodiversity by adding heat-tolerant fauna and flora, preserving local environmental conditions and the transformation of spaces into nature-based solutions (NBS)”, Mitsis Hotels Group states in the third edition of the Annual Social Report for the year 2021.

This program follows a previous investment round for the years 2017-2021, amounting to 100 million euros.

New units in the portfolio

Also, at the same time, the group proceeded in the summer with the acquisition of the Aldemar Cretan Village Beach Hotel and Aldemar Royal Mare Thalasso Resort in Crete, doubling its presence on the island, while it also acquired the North Afandou area (Golf Afandou) in Rhodes where it will developed with three superior hotels, golf course, marina, villas, etc.

Kammena Vourla thermal springs

The investment plan for the coming years also includes the development of the “Loutropolis of Kammena Vourla” as the group was the only one to submit an offer to the Hellenic Republic Asset Development Fund-HRADF for its utilization through the GALINI HOTELS TOURISM AND COMMERCIAL ENTERPRISES S.A. scheme. and STARITEM INVESTMENTS PLC. The offer was unsealed a few days ago as well as the valuation of the independent evaluator for the rental value of the property. The above is being examined by HRADF and decisions are expected at the next meeting of the Board of Directors.

The property, with a total area of 474,524 m2, includes the facilities of the “Galini” hotel and the “Hippokratis” hydrotherapy center, which are in operation, the listed hotels “Radion” and “Thronion” and the “Asklipios” hydrotherapy center, which are abandoned. Within the area is the “Georgalas” thermal spring, which has been recognized since April 2020.

The tender process for the exploitation of the property is carried out in one phase, while the financial consideration includes a one-time consideration of at least 1 million euros and an annual rent, with the sole criterion for the evaluation of the offers being the highest final rent, made up of the one-time consideration and the annual rent offered in present value. The bidder, through the lease agreement, will be required to implement mandatory investments in order to upgrade and modernize the property.

It should also be noted that the Mitsis group is also developing a four star hotel in Piraeus with 150 beds, in the former Metaxas warehouse.