Athens, June 5, 2026
PRESS RELEASE
HPPC signs the long-term lease for “Xenia Karterou”
An iconic project by Aris Konstantinidis in Crete enters a trajectory of development and reopening – Since the beginning of the year, tenders have been launched and procedures completed for 6 Xenia hotels
The Public Properties Company (HPPC), a subsidiary of the Growthfund, takes another decisive step towards the revival of the historic Xenia hotels by signing today the long-term lease contract for “Xenia Karterou”.
The signing of the contract, following the completion of the pre-contractual audit by the Court of Auditors, marks the conclusion of a significant development process implemented by HPPC through an international tender for the long-term lease of a total area of 81,785.72 sq.m. in the Karteros area of Heraklion, including the front maritime zone and the beach.
The lessee is the joint venture “GALAZIO KARTEROS – ILIOS LTD & VILLAGE PLANNING SINGLE MEMBER P.C.”, which submitted the highest financial offer during the tender, amounting to 715,660 euros annually, confirming the strong investment interest in the property and the development prospects of the area. The lease has a duration of forty (40) years and provides for the full restoration, upgrading and operation of the existing hotel complex.
Xenia Karterou constitutes one of the most significant examples of the country’s post-war architectural heritage. Designed by the leading Greek architect, Aris Konstantinidis, it operated since the early 1960s, while it has been designated as a listed monument since 2011.
Its unique location, in direct contact with the sea and a short distance from Heraklion and the city’s international airport, makes it a property of exceptional strategic value for the development of a modern, high-standard tourist destination, with respect for its architectural identity and historical significance.
“Xenia” Revival Strategy
The development of “Xenia Karterou” is part of HPPC’s broader plan to showcase and reactivate iconic properties in its portfolio, such as the Xenia hotels, aiming to attract investment, protect the country’s architectural heritage and create new value for local communities and the economy.
Since the beginning of 2026, the company has accelerated the maturation and development processes of these properties, with tangible results for 6 of them. Indicatively, the company launched two new tenders, for Xenia Vytina, where a highest bidder has emerged and Xenia Komotini. In addition, the lease agreement for Xenia Ouranoupoli was signed, as well as the concession lease agreements for Xenia Andros with the Municipality of Andros and for Xenia Mytilene with the University of the Aegean.
HPPC’s CEO, Ms. Iro Hadjigeorgiou, stated: “The signing of the lease for Xenia Karterou is another significant step in HPPC’s strategy to reactivate iconic properties. The revival of the Xenia hotels is our strategic priority. We have already completed a series of projects, giving new life to properties that remained inactive for years and creating new growth prospects. By the end of the year, new development tenders for Xenia hotels in our portfolio are expected through modern, transparent and competitive processes.”
HPPC promotes the transition of historic properties from inactivity to the creation of new development prospects, while ensuring the preservation of their unique character and cultural identity.
