The Hellenic Public Properties Company (ETAD), a subsidiary of the Hellenic Sovereign Wealth Fund, is taking another step toward the revitalization of the historic Xenia hotels by signing a long-term lease agreement today for the “Xenia Karterou.”
The signing of the contract, following the completion of the pre-contractual audit by the Court of Auditors, marks the completion of a significant development process implemented by ETAD through an international tender for the long-term lease of a total area of 81,785.72 square meters in the Karteros area of Heraklion, including the foreshore and the beach.
The lessee is the joint venture “GALAZIO KATEROS – HELIOS EPE & VILLAGE PLANNING MON I.K.E.," which, as part of the tender process, submitted the highest financial bid, amounting to 715,660 euros per year, confirming the strong investment interest in the property and the development prospects of the area. The lease has a term of 40 years and provides for the complete restoration, upgrade, and operation of the existing hotel complex.
The Xenia Karterou is one of the most significant examples of the country’s post-war architectural heritage. Designed by the leading Greek architect, Aris Konstantinidis, it has been in operation since the early 1960s and has been designated a listed monument since 2011.
Its unique location, right on the water and a short distance from Heraklion and the city’s international airport, makes it a property of particular strategic value for the development of a modern, high-end tourist destination, while respecting its architectural identity and historical significance.
Strategy for the Revitalization of “Xenia”
The development of “Xenia Karterou” is part of ETA’s broader plan to highlight and revitalize iconic properties in its portfolio, such as the Xenia hotels, with the aim of attracting investment, protecting the country’s architectural heritage, and creating new value for local communities and the economy.
Since early 2026, the company has accelerated the development and utilization of these properties, with tangible results for six of them. For example, it launched two new tenders: one for the Xenia Vytina, where it has emerged as the highest bidder, and another for the Xenia Komotini. In addition, the lease agreement for the Xenia Hotel in Ouranoupoli was signed, as well as the concession lease agreements for the Xenia Hotel in Andros with the Municipality of Andros and for the Xenia Hotel in Mytilene with the University of the Aegean.
ETAD CEO Iro Hatzigeorgiou stated:“The signing of the lease for the Xenia Karterou is another important step in ETAD’s strategy to revitalize iconic properties. The revitalization of the Xenia hotels is a strategic priority for us. We have already completed a series of projects, breathing new life into properties that had remained inactive for years and creating new growth prospects. By the end of the year, new tenders for the development of Xenia properties in our portfolio are expected, through modern, transparent, and competitive processes.”
ETAD 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.