Buy a Hotel in Cyprus

While some investors debate the returns of stocks and cryptocurrencies, others are already earning from something that never goes out of fashion — sun, sea, and hospitality. Cyprus welcomes around 4 million tourists every year. All of them need a place to stay. And this is your opportunity.

Why is the hotel business in Cyprus a profitable investment?

Buying a hotel in Cyprus means acquiring a ready-made income-generating asset. The island is among the top five European destinations for beach tourism, with a season lasting from April to November. During peak months, occupancy rates of quality hotels reach 85–90%. That is why commercial property in Cyprus continues to grow in value faster than residential real estate.

Over the past five years, hotel property prices have increased by approximately 23%. Demand remains stable, and the market is far from saturated, especially in coastal areas. Properties in Limassol, Paphos, and Ayia Napa typically achieve payback within 7–10 years. When selecting an asset, legal aspects are crucial — the taxes in Cyprus section helps investors understand key financial considerations.

Hotel sales in Cyprus often include an operating business with staff, licenses, and an established client base. This allows investors to generate income from the very first month. You are not just purchasing a building, but a reputation, guest reviews, and proven operational processes.

Hotel business formats on the island

Investors typically choose from several formats:

• Boutique hotels — intimate properties with 10–20 rooms and high average rates
• Apart-hotels — a combination of hotel services and apartments for short- and long-term rentals
• Family hotels — mid-scale properties with 30–50 rooms focused on families with children
• Beach resorts — large complexes with private territory, pools, and entertainment facilities

Each format has its own specifics. Boutique hotels offer high margins but require flawless service, while resorts generate high turnover yet demand professional management. To make the right choice, investors should first review the property purchase process for commercial real estate in Cyprus.

The financial side of the investment

A hotel in Cyprus can be purchased from €800,000 for a small operating property. Large beachfront complexes are typically priced between €5 and €15 million. Cypriot banks offer financing for commercial real estate at interest rates of 4–6% per year, with a minimum down payment of 30%.

The average return on investment in the hotel sector is 8–12% annually, higher than standard residential rental yields. Additionally, purchasing commercial property from €300,000 may allow investors to qualify for an investor residency status, simplifying business management and long-term presence on the island.

Cyprus Realty Center specialists will help you identify and evaluate hotel opportunities in Cyprus, conduct profitability analysis, and provide full legal support throughout the transaction. With over 10 years of experience in commercial real estate, we offer a comprehensive approach available in the Cyprus Realty services section. Contact us today — and turn your hotel investment idea into a profitable and sustainable business.