Hotel Investment Partners (HIP), the largest hotel owner in Southern Europe, has officially entered the Cypriot hospitality market with the acquisition of the five-star Olympic Lagoon Resorts Paphos.

The 276-room beachfront resort was acquired from Amathus Group and Kanika Group, with Kanika remaining as long-term operator under a new management agreement. The deal represents HIP’s first investment in Cyprus, aligning with its strategy to expand in mature Mediterranean destinations.

Located around 4 kilometres south of Paphos city centre, the all-inclusive resort offers six restaurants, five bars and five swimming pools, with direct access to one of Cyprus’ Blue Flag beaches.

HIP has announced a €17 million CAPEX programme (around €61,600 per room) to upgrade guest rooms and common areas, building on investments already made by Kanika over the past three years.

Sustainability is central to the repositioning, with planned upgrades including energy-efficient HVAC systems, advanced energy monitoring, LED lighting, and a target to achieve BREEAM certification, strengthening the resort’s ESG profile.

HIP’s decision to retain Kanika Group reflects its established model of partnering with strong local operators while focusing on ownership, investment and asset repositioning. Kanika manages five resorts in Paphos and Ayia Napa under the Olympic Lagoon Resorts and MadeForTwo Hotels brands.

The Cyprus acquisition complements HIP’s expanding Mediterranean footprint, particularly in Greece, where it owns 10 hotels with around 2,600 rooms and has announced a €400 million investment programme. The group is also active in Italy and Portugal, reinforcing its long-term focus on high-quality resort destinations.

The deal comes as Blackstone, which acquired HIP in 2017, prepares to sell its 65% stake, valuing the company at around €6.5 billion. Singapore’s sovereign wealth fund GIC, already a significant shareholder, is expected to play a key role in HIP’s future.

Legal advisors included SCORDIS, PAPAPETROU & Co LLC for Kanika and Amathus, and Antis Triantafyllides & Sons LLC for Blackstone and HIP.