Paliouri tourism development reaches final permitting milestone

The decision represents one of the final key licensing requirements for advancing the project, which is being developed by a company controlled by Ivan Savvidis following its acquisition of the property through the Hellenic Republic Asset Development Fund (HRADF) privatization process.

The approval covers interventions within the immediate and wider surroundings of the listed heritage complex, in accordance with the already established Special Spatial Development Plan for Public Property (ESCHADA), published in Government Gazette 95/D/2024. According to the Ministry of Culture’s decision, the four proposed interventions are considered fully compatible with the approved urban planning and architectural framework, while complementing the previously approved restoration and adaptive reuse study for the listed buildings of the historic motel.

The approval is subject to specific conditions. All excavation works must be carried out under the supervision of the competent Ephorate of Antiquities, with provision for archaeological excavation should antiquities be discovered, at the investor’s expense. In addition, photovoltaic systems must be installed in a manner that prevents them from being visible from the surrounding area, thereby preserving the character of the protected monument.

The project concerns the redevelopment of one of Greece’s most significant coastal public assets. The Paliouri Xenia complex, an outstanding example of post-war architecture designated as a protected monument of modern architecture, has remained abandoned for nearly two decades, suffering extensive deterioration and vandalism.

The investment stems from the international tender launched by HRADF for the development of the site, in which Belterra Investments, owned by Ivan Savvidis, submitted the winning bid in 2021 with an offer of €14 million. The agreement provides for a 99-year concession of the property for the development of an integrated, high-end mixed-use tourism destination.

The scope of the tender extended well beyond the restoration of the historic hotel. It envisaged the comprehensive redevelopment of the coastal site through the creation of an integrated tourism resort, including the development of new five-star hotel facilities, tourist residences, wellness and leisure amenities, food and beverage outlets, shared infrastructure, and extensive landscaping works, with particular emphasis on preserving and showcasing the historic Xenia complex.

At the heart of the development is the complete restoration and reopening of the listed complex, which will be functionally integrated into the new tourism destination while preserving the architectural characteristics that have made it a landmark of Greek modernist architecture.

The total investment is estimated to exceed €80 million, covering both the restoration of the historic monument and the construction of the new tourism facilities. The development is expected to create a significant number of jobs during both the construction and operational phases and is anticipated to strengthen the tourism offering of Kassandra and the wider Halkidiki region by adding a new luxury hospitality destination in one of Greece’s most popular tourist areas.

The Paliouri Xenia complex is regarded as one of the most important works of architect Aris Konstantinidis, a leading figure of Greek modernism and the creator of the iconic Xenia programme of the Greek National Tourism Organisation (GNTO). Designed in 1960 and completed in 1962, it was the first modern hotel complex in the area, marking the beginning of organized tourism development in southeastern Halkidiki.

The motel was designed as a Category B establishment with a capacity of 144 beds and comprised four accommodation wings, a restaurant and bar, staff housing, support facilities, and even a petrol station, reflecting the emergence of road tourism in Greece during the 1960s. The landscaped grounds also featured a sculpture by Klearchos Loukopoulos, highlighting the close relationship between the Xenia programme and contemporary Greek art.