An impression of the upcoming Xenia Hotel on Kythnos. Photo source: Tresor Hospitality
The historic Xenia Hotel in Kythnos is set for revival, with plans moving forward to transform it into a modern thermal tourism center following the completion of the Environmental Impact Assessment.
The study, open for public consultation until October 24, first proposes the maintenance and restoration of the existing structure. It then details plans to redevelop the hydrotherapy facilities and renovate the 46-room hotel, with the goal of creating a modern thermal tourism destination that showcases both the island’s healing springs and the cultural heritage.
In 2022, Israeli entrepreneur Avraham Ravid acquired the hotel through a tender process for 5 million euros. Once the study is approved and the Tourism Ministry issues the permit, he intends to invest an additional 25 million euros in developing a five-star resort complex.
The financing plan covers 20 percent of the cost through equity, another 20 percent through external borrowing, and the remaining 60 percent through subsidies or other financing.
Kythnos aims for a spot on the international luxury tourism map
Photo source: Tresor Hospitality
The investment’s primary goal is to attract high-end international travelers and position Kythnos on the global luxury tourism map. The strategy envisions year-round operation, with full occupancy during the summer months and variable levels throughout the rest of the year.
“The hotel is expected to operate from November to April at progressively reduced capacity, depending on demand. The study estimates the average annual occupancy at 65–70 percent,” the report notes.
In addition, the project is expected to create 35 permanent jobs and around 20 indirect positions.
Reviving Greece’s historic Xenia hotels
Photo source: Tresor Hospitality
The Greek Tourism Ministry is also moving forward with a public-private partnership (PPP) for three historic Xenia properties: Helios in Anavyssos, Heraklion (Kokkini Hani), and Perea in Thessaloniki. The tenders involve long-term leases, requiring private investors to undertake not only the renovation and reopening of the hotels but also the upgrading of the tourism schools located within the complexes.
In addition, two Xenia hotels in Halkidiki have secured investors and are set to undergo regeneration: Xenia Ouranoupolis and Xenia Paliouri, both slated to be transformed into luxury accommodation, strengthening the hospitality sector in Central Macedonia.
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