Rhodes: €60m Kiotari resort and 30-year Hotel of the Roses lease

Two large hospitality projects on Rhodes moved forward in late September 2026: a €60.3 million five-star resort in Kiotari and a 30-year lease of the municipal Hotel of the Roses to the island’s casino operator.

New resort in Kiotari

H Hotels Collection, owned by the Hatzilazarou group, plans a 503-room resort on 57,273 m² of its own land in Kiotari. The budget is about €60.3 million and the unit is expected to open in 2028.

The project is described as a premium all-inclusive resort with 48 private pools, next to the group’s existing Boutique 5 Hotel & Spa. It is expected to create 136 permanent jobs. A building permit pre-approval was issued on 5 August 2026.

Hotel of the Roses lease

In Rhodes town, the municipal council was due to vote on 30 September on final terms for leasing the Hotel of the Roses to Casino Rodou SA. The municipality owns the building. The current lease ends on 31 December 2026.

The proposal runs to 31 December 2056. It sets a fixed rent of €625,000 a year from 1 January 2027, plus 2% of gross revenue from hotel and other operations. The lessee must invest €6 million by 31 December 2028 and drop claims of €2,422,759.63 against the municipality. The council approved the extension in principle on 22 December 2025.

The deal has critics. Local commentary on 25 September noted that the previous rent was €460,000 a year and argued that a fixed rent until 2056 exposes the municipality to inflation. The Medieval City service reportedly said it could not technically assess an investment plan without studies and schedules. The result of the 30 September vote had not been published in the sources reviewed.

What it means for buyers

Both projects add to tourism investment on Rhodes, which supports rental demand and local employment. The Kiotari resort is on the south-east coast, away from Rhodes town. The casino hotel deal concerns a municipal building in Rhodes town and depends on the council’s final vote.