The approval decision, jointly issued by the Minister of Tourism, Olga Kefalogianni, and the Director General for Environmental Policy of the Ministry of Environment and Energy, Konstantinos Dimopoulos, pertains to the upgrade and transformation of two existing 5-star hotel units — "Blue Palace" and the former "Argo" — into an integrated tourist accommodation complex with a total capacity of 631 beds.
The new resort, located in Plaka, Elounda (Municipality of Agios Nikolaos, Crete), will be developed on a site spanning 249,401.87 square meters. It will include the redevelopment of the existing "Blue Palace" complex, which currently has 452 beds and will be reconfigured to 348 beds, as well as the upgrade of the adjacent former "Argo" complex — currently consisting of furnished apartments (bungalows) with a capacity of 99 beds — which will be expanded to accommodate 113 beds. In addition, the project will include the construction of 44 new furnished tourist residences, offering a combined capacity of 170 beds.
Two wellness centers (spas) are also planned: one with a capacity of 70 persons, to serve as a primary special tourism infrastructure facility within the complex, and another with a capacity of 30 persons, classified as an auxiliary special infrastructure unit.
A range of additional facilities will be developed, including restaurants, retail outlets, sports amenities, swimming pools, parking areas, a 30-meter pier, water and electricity infrastructure, fire protection systems, a photovoltaic system (999.9 kWp), a desalination unit, composting facilities, a biological wastewater treatment plant, and a helipad.
The overall development will be organized into two zones. Zone I, covering 164,490 sq.m., will include the main hotel infrastructure, renovations, new residences, spa facilities, a restaurant, sports areas, and supporting infrastructure. Zone II, covering 87,050 sq.m., will accommodate staff facilities, additional tourist residences, a children’s center, the second spa facility, and energy and operational support infrastructure.
According to the Presidential Decree dated 27 September 2023, the project is subject to the following planning parameters: an average floor area ratio (FAR) of 0.13, with a total buildable area of 32,625.06 sq.m. In particular, Zone I is subject to a FAR of 0.165 and a maximum buildable area of 27,140.85 sq.m. (of which 4,200 sq.m. constitutes new construction), while Zone II is governed by a FAR of 0.063 and a maximum buildable area of 5,484.21 sq.m. The maximum building height is set between 6.5 and 7.5 meters. Land coverage is limited to 20% in Zone I and 10% in Zone II. Furthermore, provisions allow for the transfer or long-term lease of up to 30% of the built surface area of the tourist residences.
It is also noted that one of the redeveloped hotel units, along with selected residences, will operate under the Rosewood Blue Palace brand, becoming part of the international Rosewood Hotels & Resorts network. This development marks the brand’s first entry into the Greek tourism market, scheduled for 2026. Rosewood Hotels & Resorts currently manages a portfolio of 32 luxury hotels, resorts, and residential properties across 19 countries.
