Prodea expands MHV Hospitality platform with €346M investment pipeline

Prodea is gradually consolidating its hospitality assets under MHV, creating a unified platform in the sector. The move follows the strategy previously implemented in logistics, where the company consolidated its relevant properties into a separate vehicle before Invel Real Estate and LGT Capital Partners subsequently entered as investors, acquiring a combined 49% stake.

MHV currently manages nine hotel properties with a total value of approximately €671 million and a capacity of 1,253 rooms. The €1.2 billion target does not include new projects which, according to management, are already under discussion across the three markets.

Of the overall investment programme, €252 million will be allocated to hotel developments and €94 million to residential properties associated with hotel complexes.

Once the investments have been completed and stabilised, the company expects to generate approximately €79 million in EBITDA, with an average room rate of close to €500.

Shift Towards Hotels and Branded Residences

MHV’s investment strategy focuses on mixed-use developments combining hotels with residential properties, offices, dining, retail and wellness facilities.

More than 18,000 sq m of residential space is currently under development, with an estimated gross asset value of €207.5 million upon completion. The average projected selling price is approximately €11,400 per sq m.

Prices are significantly higher in Limassol. At the Parklane, a Luxury Collection Resort & Spa, an additional 37 branded residences are planned, with selling prices ranging between €20,000 and €29,000 per sq m.

Prodea links its positioning in the sector to growing demand for luxury travel.

According to data presented by Prodea Chief Executive Officer Aristotelis Karytinos, high-net-worth travellers account for approximately 0.3% of the global population, but represent 36% of total travel expenditure and almost 70% of luxury travel spending.

The company believes that Greece and parts of Italy still have significant room for growth in the luxury hotel segment compared with more mature European markets.

The Landmark as a Model for Mixed-Use Development

A key project in the Cypriot portfolio is The Landmark Nicosia, formerly Hilton Cyprus, which combines a hotel, residences and office space. Approximately €90 million has been invested in the redevelopment of the hotel, which has been operating since late 2025 as a member of Marriott’s Autograph Collection and features 283 rooms and suites.

The development is complemented by two residential and office towers, representing a total investment of approximately €105–110 million.

The residential tower comprises 54 residences, with prices starting at approximately €800,000. Prices per square metre range from around €7,200 and can reach €16,000 on the upper floors. The second tower provides 21,650 sq m of office space, built to LEED Gold specifications. Tenants include EY and Murex.

Prodea is exploring the possibility of developing similar mixed-use projects in Greece, although management identifies the lack of suitably sized plots with appropriate planning and zoning characteristics as a key constraint.

Investments in Porto Heli and Paros

In Greece, MHV is proceeding with the renovation and expansion of the former Nikki Beach in Porto Heli, which will operate as Aliis Resort Porto Heli – MGallery Collection.

The first phase, representing an investment of approximately €30 million, is scheduled for completion in June 2027. The resort is expected to feature 94 rooms and suites, six villas and three dining and leisure venues.

In Paros, the company is planning an investment of approximately €100 million for the redevelopment of the Porto Paros Resort. Construction is expected to begin in 2027 and be completed by the end of 2029.

The project envisages approximately 140 rooms and four villas, with the selling prices of the latter estimated to reach as much as €29,000 per sq m.

The Greek portfolio also includes Moxy Athens City in Omonia and two leased hotel properties on Mitropoleos Street, Ergon House Athens and the Domes Mitropoleos development. The latter two properties generate combined annual rental income of more than €2.5 million.

In Italy, MHV is renovating an 80-room hotel in Cortina in the Dolomites, which is planned to operate in partnership with Accor’s Emblems Collection and to feature two dining venues under the Nammos brand.

Target to Resume Milos Project in 2027

The expansion of Domes White Coast in Milos is at a different stage, with construction work currently suspended. The approved environmental impact assessment provides for an expansion onto an adjacent 29.4-hectare site in the Mytakas area and an increase in capacity from 99 to 271 beds.

The project had been challenged before the Council of State by the Municipality of Milos, the Hellenic Society for Environment and Culture, and private individuals. The appeal was rejected as being filed out of time. However, construction cannot resume before the expiry, at the end of 2026, of the general suspension of construction works along the island’s northeastern coast.

Prodea is targeting the resumption of construction in early 2027 and completion of the expansion in 2028.