The Ministry of Environment and Energy (YPEN) has ordered the suspension of construction works and referred the matter to the National Transparency Authority, while the Council of State (StE) imposed a temporary block. At the same time, the investor company maintains that all procedures have been fully legal and institutionally approved, highlighting the ongoing conflict between administration, the judiciary, and investors.
Background on the Hotel Investment
The five-star White Coast Pool Suites hotel in Milos, located on Mytakas Beach, was acquired by Prodea in 2023 through V TOURISM, in which it holds a 49% stake, for a total consideration of €14.85 million. The remaining 51% was acquired by Invel Real Estate. The hotel is managed by Domes Resorts (Spanou family) and operates under a luxury brand.
For the project whose construction has been temporarily blocked, environmental terms were approved in 2024, and all necessary building permits for the full development were granted in 2019. The main hotel unit had been completed and in operation since 2021.
The permitting process for the expansion works was at the stage of approval for the Technical Environmental Study (TEPEM) since April 2025. Approval was required before the start of expansion works to define measures related to the Urban and Suburban Reuse Plan for treated wastewater from the facility.
Statement from the Ministry of Environment and Energy
Regarding potential violations of environmental and planning legislation connected to the building permit for the new hotel in Mytakas, Milos, the Ministry, under Minister Stavros Papastavrou and Deputy Minister Nikos Tagaras, took the following actions:
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Submitted a report to the National Transparency Authority (EAD) to investigate potential irregularities in issuing the building permit.
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Sent a directive to the Municipality of Milos to take all necessary measures to suspend all construction works, in accordance with Presidential Decree 18/89 (Articles 52 and 52A). Should an annulment request be filed with the Council of State, the competent authority, here the Municipality of Milos, may immediately order the suspension of the contested permit.
Until the legality of the permit is fully investigated by the EAD and the Council of State, which is reviewing related annulment and suspension requests, the immediate halt of works that could harm the island’s natural environment is deemed necessary.
The Ministry is also finalizing the Special Urban Plan for the Western Cyclades, which includes Milos, to definitively set building regulations on the island. On January 28, the Ministry will hold a working meeting with Milos Mayor Manolis Mikelis to discuss joint actions for further environmental protection.
Council of State Decision
According to the temporary order by the President of the Council of State’s Fifth Chamber, Christos Douhanis:
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Execution of Decision No. 21704/05.08.2024, approving environmental terms by the Decentralized Administration of the Aegean, for the expansion of the hotel in Mytakas, Milos, is suspended.
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All construction works under the relevant building permit, valid until 31 December 2025, are halted, even if an updated permit extending validity has been issued.
V Tourism Statement on Domes White Coast Milos Expansion
According to V Tourism, the hotel has been legally licensed for years in Mytakas, Milos, and its expansion was approved in 2024 following a lengthy, institutionally required procedure exceeding one year. The process included public consultation of the Environmental Impact Study and positive opinions from all competent authorities.
The expansion has been issued both a revised building permit and an Environmental Terms Approval (A.E.P.O.). V Tourism emphasizes that a prior administrative appeal against the A.E.P.O. was rejected without further legal challenge. The company states it fully respects the institutional role of the state and cooperates with all administrative procedures, stressing that any arbitrary overturning of legally approved decisions would be challenged legally, as such self-reversal undermines legal certainty and the investment environment.
The existing hotel has 58 licensed rooms, of which 50 are currently operational. Upon completion of the approved expansion, total capacity will reach 117 rooms with the addition of 59 new hotel rooms. The company notes that this is a measured expansion, not a large-scale development, designed to ensure the sustainability of the investment in an island environment with high construction and operating costs.
