A Transformative Investment for Elounda: The New Blue Palace Resort
In the heart of the stunning Elounda region, Phaea Resorts, co-owned by the dynamic Sbokou sisters, Agapi and Constantza, along with Eftichios Vassilakis of Aegean Airlines, is set to embark on an ambitious investment that promises to redefine luxury tourism in Greece. The flagship Blue Palace, currently an established resort, will undergo a dramatic transformation into a luxurious complex featuring three hotels and 44 fully equipped tourist residences, expanding its capacity to accommodate 743 guests. With a staggering investment of approximately 100 million euros, this project represents a monumental shift in the region’s tourism landscape.
Environmental Considerations and Approvals
Before this grand vision can take shape, regulatory considerations play a crucial role. The environmental study for the project has received the green light from the Ministry of Culture, which signifies adherence to sustainable practices and respect for the natural surroundings. However, as the complex is located near Spinalonga, a historical site aspiring for UNESCO World Heritage status, the final approval from the Central Archaeological Council is still pending. This highlights the delicate balance between development and preservation, a priority for both investors and local authorities.
Renovations for a New Era
The revitalized Blue Palace is poised to feature two beautifully renovated hotels, one boasting 348 beds and the other providing 113 beds, catering to a diverse range of travelers. Additionally, a brand-new hotel with a capacity of 112 beds will be integrated into the complex. This reimagined resort will focus on offering a mix of amenities that celebrate local culture, including spaces for the sale of local products and innovative dining venues.
The introduction of 44 luxurious tourist residences with a collective capacity of 170 beds will significantly enhance accommodation options, appealing to families and groups seeking a longer stay. Notably, this renewed establishment will join the esteemed network of Rosewood Hotels & Resorts, under the brand "Rosewood Blue Palace," setting high expectations for hospitality excellence.
Wellness and Sustainability
In an era where wellness tourism is increasingly sought after, the Blue Palace will elevate its offerings with a modern wellness and rejuvenation center. This transformation includes renovating the existing thalassotherapy center to serve up to 70 guests, alongside the introduction of a new wellness center dedicated to an additional 30 visitors. By marrying relaxation with luxurious accommodations, the new complex aims to create an inclusive experience for all guests.
Sustainability is a cornerstone of this project, with plans to incorporate renewable energy sources. A newly installed 999.9 kW photovoltaic system will power the resort, alongside advanced water management strategies designed to minimize environmental impact. This commitment to sustainability not only enhances the resort’s appeal to environmentally conscious travelers but also demonstrates a forward-thinking approach to luxury tourism.
A Strategic Focus on Tourist Residences
Golf Residences, the owner of Blue Palace, is strategically pivoting towards the tourist residence market. Considering similar investments in neighboring areas such as Hersonissos, they are exploring the potential redevelopment of the Koutouloufari Village Holiday Club and the expansion of Village Heights Golf Resort. This vision underscores a growing trend among investors to create integrated complexes that offer both hotel experiences and residential accommodations.
Financially, Golf Residences is also poised to benefit from a substantial 42.5 million euros in financing through Greece’s Recovery and Resilience Fund, which will further support its ambitious initiatives in tourist residences.
Setting New Standards in Luxury Tourism
Situated on a sprawling 250-acre site in the picturesque Plaka area of Elounda, the new Blue Palace is anticipated to set new benchmarks for luxury tourism in Greece. As international investors eye the region for upscale developments, the arrival of additional high-caliber projects, such as Elounda Hills—backed by Russian-Israeli businessman Vitaly Borisov and involving an investment exceeding 500 million euros—highlights Elounda’s burgeoning status as a luxury destination.
With the reconstruction of the Blue Palace, the local community can look forward to not only increased tourist traffic but also the creation of jobs and opportunities, enriching Elounda’s economic fabric while showcasing Greece’s unmatched beauty and hospitality on a global scale.