The hotel industry in the Atlantic has witnessed a significant capital shift, with the US alternative asset management giant Blackstone, a leader in hotel rooms in southern Gran Canaria, entering the Cypriot market. The fund has begun acquiring the five-star Olympic Lagoon Resorts Paphos hotel, a move that, while limited to the Mediterranean, sends a serious warning to established, high-value destinations like southern Gran Canaria.
Blackstone's arrival in Cyprus, through Querin Limited, adds to the activity of other major international investors such as Fattal Hotel (Leonardo) and Accor (Mercure). The fund is not only interested in the Olympic Lagoon Resorts Paphos, managed by Kanika Hotels & Resorts, but also seeks to deepen its presence in the region, replicating its successful expansion strategy in Greece.
Blackstone already has a substantial portfolio in the Greek market through its Hotel Investment Partners (HIP) group. The asset manager began its operations in Greece in 2019, acquiring five units from the Louis Group, a deal that provided crucial relief for Louis Plc, which was suffering losses exceeding €100 million due to the impact of the pandemic. HIP currently owns ten hotel units in Greece, including hotels in Rhodes, Crete, and the Grand Hyatt Athens.
However, the most relevant factor for the tourism sector in Maspalomas and the rest of Spain lies in Blackstone's investment strategy. At a hospitality forum held in November 2024, a senior investment director at HIP was clear: Greece is a priority for the company because it offers more investment opportunities compared to Spain, mainly due to lower selling prices and less intense competition.
This statement highlights the competitive pressure facing Spanish destinations. The fact that the world's largest alternative asset manager, with 12.500 real estate assets under management, ranks Spain (and therefore established, high-cost markets like Gran Canaria) as a lower priority destination compared to the Eastern Mediterranean suggests that investment capital is flowing towards markets with higher potential margins.
While the Gran Canaria sector continues to strengthen its accommodation facilities and raise the quality, Blackstone's announcement underlines the need to maintain competitiveness not only in attracting tourists, but also in attracting the global capital that finances the next generation of hotel development.
