The Ministry of Culture, along with other relevant ministries, has approved the environmental impact study for the total overhaul of the two Phaea Group hotels in Elounda, which is expected to cost up to €100 million. 

The investment has also received €43 million in loan financing from the Recovery Fund. 

LAND AND HOUSE PRICES HIGHER

The development of the new complex tourist accommodation and its Special Urban Plan is expected to drive land and residential values even higher, both in the Plaka Agios Nikolaos area and in the wider Eastern Crete region. 

IN BRIEF: THE INVESTMENT

Conversion of two existing 5* hotels 
Blue Palace (452 beds) + hotel (99 beds)
Complex tourist accommodation (743 beds) as follows:
Three 5* hotels (573 beds)
44 furnished holiday homes (170 beds) 
Two spas for 100 persons 

PARTNERSHIP WITH ROSEWOOD

One of the hotels will join the network of the international chain, Rosewood Hotels & Resorts, as Rosewood Blue Palace, from 2026. The portfolio of Phaea, as the brand name of the company Golf Residences SA, owned by Agapi and Kostantzas Smpokos, has three more complexes in the Heraklion prefecture: 

• Village Heights Resort in Hersonsos
• The Cretan Malia Park in Malia Pedialis
• Το Koutouloufari Village Holiday Club