“Cyprus is one of the markets where Rezidor saw an opportunity as we seek to establish a stronger footprint across the Mediterranean,” Rezidor Hotel Group’s Senior Director for Business Development Middle East and Africa Elie Milky said, explaining the decision to site an internationally branded hotel in Larnaca.
Left behind by neighbouring Limassol, which boasts a string of five-start luxury hotels, Larnaca too can now brag about its own international hotel offering.
“Cyprus has only three branded hotels across the island. Our signing in Larnaca makes Radisson Blu the first and only international hotel brand to enter the city and marks the first international hotel signing on the island in years,” Milky said.
An international hotel brand can also re-establish the country’s image as a serious player in the tourism market, he said.
“An international presence would drive more business into Cyprus, not only in terms of volumes but also in terms of more upper scale clientele from around the world and from strong source markets. We believe this signing has helped put Cyprus back on the international hotel scene,” Milky added.
Rezidor, whose portfolio includes Radisson Blu, Park Inn by Radisson and Hotel Missoni, has more than 440 hotels across the world and is aggressively expanding in the Mediterranean region.
The luxury project for the 105-key property at an estimated cost of €35 million, is a franchise agreement between Rezidor, local real estate developer Quality Group and hotel management operator SunnySeeker Hotels.
“We were approached in this particular case by SunnySeeker Hotels and Quality Group. Our strategy with regards the island has become more proactive now as we see greater opportunity across the country,” Milky told the Cyprus Weekly.
Close to beach and airport
The 105-room property, which is already under construction in Larnaca’s Port area, is strategically located close to the main gateway into Cyprus – Larnaca Airport – as well as Larnaca city centre, all the while making the most of Larnaca’s sandy beaches and clear waters. And it couldn’t come at a better moment for Larnaca, which has set its sights on upgrading the area around Larnaca Port and turning itself into a year-round tourism destination.
“The established (feeder) markets of Europe and the emerging markets of Asia are expected to be the main source markets. The hotel is also expected to attract growing numbers from the Middle East as well as domestic tourism,” Milky said.
With the government’s aim of attracting more high-spend visitors and investors to the island, Rezidor’s arrival may be just the kick-start needed. In June, President Nicos Anastasiades spoke of a new strategic plan for tourism, which would include the creation of a body to help absorb funds from a new €350 billion EU investment plan.
“There is room for improvement in terms of licensing and permits as this will reduce investment obstacles by making Cyprus an investor- and business-friendly destination. It would encourage more investors to partner with international hotel chains,” Milky said.
He added that top officials in Larnaca and representatives of the Cyprus Tourism Organisation (CTO) have pledged support for the project and have promised to work together to help reduce potential delays, especially when it comes to licensing and permits.
“We trust this will be done for the benefit of the hotel industry in particular and the economy as a whole,” said Milky.
The Hotel Group director said that Cyprus offers solid infrastructure as well as continued security and stability.
“This makes the tourism industry there sustainable and lucrative for further investment,” he said.
How Rezidor’s hotel offering will perform in the first six to twelve months remains to be seen, but Milky is confident, expecting the hotel to outperform the Larnaca market once it opens.
“It will be the only internationally branded hotel in the city offering the best, state-of-the-art product, particularly for the corporate, meetings and events and extended stay markets,” said Milky.
With the introduction of a new hotel on the local scene, more jobs should open up to the local workforce in Cyprus, which has a long tradition of highly trained staff. One of the consequences of the economic fallout has been mass unemployment, especially among the youth population.
“Cyprus is rich in talented people, particularly in the hospitality industry. Our partners are taking advantage of that and seek to continue to contribute to the recovery of the island’s economy. The final number of employees to be employed will be determined once we finalise the facilities, which we are inthe process of doing,” he said.
While Larnaca is the first investment for Rezidor, it has not ruled out further expansion.
“Further expansion in Cyprus would be strategic with the right owners and partners, while offering the ideal brand for the right location,” Milky said.
Source: InCyprus
