Ella Resorts Sets Sights on Hotel Growth in Greece, Mediterranean

Elissa Lifestyle Beach Resort, Rhodes. Photo source: Ella Resorts

Ella Resorts, the hotel arm of US global alternative investment firm HIG Capital, recently announced plans for further expansion in Greece and the Mediterranean.

A luxury lifestyle hotel group, Ella’s portfolio currently includes a collection of eight sustainable “eco-chic” resorts on the islands of Rhodes, Corfu, Crete, and in Attica. Following a phased development and refurbishment plan, Ella’s portfolio currently has a capacity of 3,000 rooms in Greece, with a target of reaching 6,000 rooms.

It is projected that Ella’s current portfolio will command a value well in excess of 1 billion euros.

According to Inventio, the firm’s exclusive partner in Greece, HIG Capital plans to expand further into additional established Mediterranean holiday destinations, focusing on opportunities in Spain, Portugal, and Italy, with the aim of reaching 10,000 total rooms in its portfolio.

Dimitris Kalligeris, COO of Streem Global; Konstantinos Bitros, CEO of Inventio Group and CEO of Streem Global; Kostis Sideris, COO of Inventio; and Giorgos Stamatiou, CEO of Ella Resorts. Photo © Greek Travel Pages (GTP)

Speaking to journalists during a recent media briefing on Rhodes, Inventio CEO Konstantinos Bitros said HIG has set three main criteria that must be met by units to be included in Ella’s portfolio.

“In order to acquire a hotel, firstly, we look for it to be within 1.5 hours of an international airport. Secondly, it must have a capacity of more than 200 rooms or the potential for expansion to more than 200 rooms. Thirdly, it must be located on the beachfront,” Bitros said, adding that HIG is interested in expanding further on Crete and has its eye on Halkidiki and other islands.

HIG’s hotel investments in Greece

Helea Lifestyle Beach Resort, Rhodes. Photo source: Ella Resorts

Ella’s portfolio currently includes eight hotel units, although some are not yet operational as they are undergoing renovation. This season, five hotels of Ella Resorts are open and welcoming guests: two on Rhodes (Elissa and Helea resorts), and three on Corfu (Capo Di Corfu, Pelekas Monastery and Mon Repos Palace).

Rhodes

In particular, Elissa Lifestyle Beach Resort (adults-only) and Helea Lifestyle Beach Resort (all-inclusive), with a total capacity of 835 rooms, have been fully renovated and are now operating on Rhodes. The properties were formerly part of Aldemar of Rhodes, which HIG acquired. They are the only renovated hotels with an A+ energy classification, a standard that was completely managed by Inventio Edge, a member of Inventio Group. The total investment to date is estimated at more than 100 million euros.

Corfu

Mon Repos Palace, Corfu. Photo source: Ella Resorts

On Corfu, HIG acquired four units from Mayor Holdings, and a complete renovation and expansion of these hotels, with a capacity of 1,400 rooms (2,500 beds) and an A+ energy classification, is underway. The total investment is estimated to exceed 150 million euros. Once the full development plan is completed, the number of jobs will increase from 400 to 700.

Renovation works have already begun on Álkyna Lifestyle Beach Resort (formerly La Grota Verde), which will operate fully refurbished next season. Renovations are also being prepared for Capo Di Corfu and Pelekas Monastery, with a combined total capacity of more than 650 rooms, scheduled to start in autumn 2024.

Mon Repos Palace will be renovated while in operation due to its historic significance, and no structural changes will be made. All renovations are overseen by Inventio Edge.

Crete

Ella Resorts CEO Giorgos Stamatiou introducing the Rocrita Lifestyle Beach Resort that will operate in 2025. Photo © Greek Travel Pages (GTP)

This year, HIG also acquired the former Aldiana Club in the Mochlos town of Crete. An investment plan of 50 million euros has been allocated for its renovation, expansion, and upgrade to a 5-star hotel, to be named Rocrita Lifestyle Beach Resort, with a total capacity of 360 rooms. The project, under the supervision of Inventio Edge, is ongoing and is expected to be operational for the 2025 tourism season.

Attica

Additionally, HIG acquired the former Althea Hotel in Agia Marina, Attica, which has a capacity of approximately 350 rooms. Currently, the renovation project is in its early design and planning stages, which are estimated to last at least two to three years. The renovation is expected to require funds of 70-80 million euros.

A Florida-based private equity and alternative assets investment firm, HIG Capital was founded in 1993 and currently manages $60 billion in equity capital. In Greece, HIG Capital has a presence in the hospitality industry through the brand Ella Resorts and is also active in the logistics sector through its platform, Streem Global.

According to Bitros, HIG’s investments in both sectors to date offer returns of 15 to 17 percent.

Dimitris Kalligeris, COO of Streem Global; Konstantinos Bitros, CEO of Inventio Group and CEO of Streem Global; and Kostis Sideris, COO of Inventio. Photo © Greek Travel Pages (GTP)

Regarding the logistics sector, HIG has developed the operational platform Streem Global, which is being used to integrate the companies already in its portfolio. “We are currently in the phase of consolidating these companies. The goal is their financial and operational integration, which will take approximately 18 months to complete. This will create an integrated ‘vehicle’ that will position Greece as a strategic pillar in global transit centers,” said Streem Global COO Dimitris Kalligeris during the media briefing.

HIG’s largest project, valued at 300 million euros, involves converting the former factory of Hellenic Steel SA into a model international transport and storage center (trimodal – by train, ship, and truck). Works are set to begin in early 2025.

Moreover, during the briefing, Inventio Group’s Konstantinos Bitros also mentioned that, alongside strengthening its presence in the hospitality and logistics sectors in Greece, HIG will focus on developing a new platform for the primary sector, specifically in agri-food, with further details expected to be released in due course.

Bitros emphasized, “We have been mandated by HIG shareholders to grow our platforms in Greece as much as we can. HIG can now be considered a strategic investor for Greece”.