Blackstone Enters the Cyprus Market with the Acquisition of the Five-Star Olympic Lagoon Resorts Paphos

Significant changes are underway in Cyprus’ hospitality and real estate market as US investment giant Blackstone steps into the country, initiating the process of acquiring the five-star Olympic Lagoon Resorts Paphos.

For Cyprus, this move may become one of the most notable developments in the industry in recent years, signalling growing interest from major international funds in the island’s tourism and property sectors.

Blackstone’s arrival follows a series of high-profile investments from other global players already active in Cyprus, including MHV / Invel Real Estate, Fattal Hotels / Leonardo Hotels & Resorts Mediterranean, and Mercure / Accor.

The American group is no stranger to the region. It has been operating in Greece for years, where it owns a substantial portfolio of hotels, including five units previously belonging to the Louis Group. These were acquired in a major pre-pandemic transaction.

A move into Cyprus that likely won’t stop at a single acquisition

Blackstone enters the Cypriot market through Querin Limited, and analysts expect that its activity will extend beyond the acquisition of Olympic Lagoon Resorts Paphos, currently managed by Kanika Hotels & Resorts.

The Cyprus Commission for the Protection of Competition was recently notified of Blackstone Inc.’s intention, via Querin Limited, to acquire the share capital of K. A. Olympic Lagoon Resort Limited and establish joint control of the resort alongside Kanika Group Ltd.

Who is Blackstone?

Blackstone is the world’s largest alternative asset manager, with more than $1 trillion in assets under management. The fund works with both institutional and private investors, focusing on building strong, resilient businesses that generate long-term value.

Its portfolio includes over 12,500 real estate assets and more than 250 portfolio companies (as of the first half of 2025).

By September 30, 2025, Blackstone had generated $417 billion in profits for its investors, including pension systems representing more than 100 million retirees worldwide.

The company also manages $288 billion in private wealth assets, offering access to private markets in partnership with financial advisors.

A crucial deal for Louis Group — but not enough to counter Covid losses

The sale of five hotel units in Greece to Blackstone was an important step for Louis Group, though it ultimately could not offset the massive financial damage caused by the pandemic.

During the recent Annual General Meeting, Louis Plc Executive Chairman Costakis Loizou highlighted that the group’s pandemic-related losses exceeded €100 million.

He explained:

«In 2019, we proceeded with the sale of five privately owned hotel units in Greece, aiming to reduce debt and improve the financial position of Louis Plc. The sale was completed in early 2020, just before the outbreak of the pandemic. The transaction was life-saving at the time, but it was not enough to cover the enormous losses and wider effects of Covid.»

Back in January 2020, Louis Plc announced the completion of the sale and transfer of the shares of the companies resulting from the partial demerger of its five Greek hotel operations to real estate funds managed by Blackstone.

According to the announcement submitted to the Cyprus Stock Exchange, the net sale price amounted to approximately €151.3 million.

Blackstone’s presence in Greece and future plans for the region

Hotel Investment Partners (HIP), part of the Blackstone group, sees strong long-term potential in the Greek market.

Today, HIP owns ten hotel units with a total capacity of 2,600 rooms, including properties in Athens (Grand Hyatt Athens), Crete, Zakynthos, Halkidiki, Corfu, and Rhodes.

HIP entered Greece in 2019 with the acquisition of the five Louis hotels and has since expanded further.

In 2024, the group acquired two more properties via HIP — one in Rhodes and one in Kassandra, Halkidiki.

During a hospitality forum in November 2024, HIP Investments Senior Director Luis Picas remarked:

«Greece remains a priority for us. It offers more attractive investment opportunities compared to Spain, primarily due to lower selling prices and milder competition.»