Cyprus was preparing for a new chapter in tourism as of late 2025, with numerous hotel projects underway across the country. Construction was progressing rapidly in all districts, with Nicosia and Larnaca leading in activity. According to the Ministry of Tourism, around twenty new hotels were under development, expected to add approximately 5,000 new rooms by 2026, enhancing Cyprus’s hospitality landscape and attracting both domestic and international visitors.
Nicosia: A Hub for Luxury Accommodation
The capital was entering the luxury hotel market with The Landmark Nicosia, Autograph Collection by MHV Mediterranean Hospitality Venture, featuring 265 rooms, 18 suites, indoor and outdoor pools, spa, gym, and tennis/padel courts. The hotel was preparing to host guests during the Cypriot EU Council Presidency in early 2026. Additionally, MHV was renovating the former Holiday Inn, scheduled for completion in 2026. Boutique hotels were also expanding with Leonardo Boutique Hotel Venetian Nicosia (2026) and NYX Hotel Nicosia (2027) by the Fattal Hotels Group.
Larnaca: Upgrading Tourism and New Resorts
Larnaca was set for a major transformation with the Palm Beach Resort, a €110 million project by Premium Access Cyprus and Thanos Hospitality Services, converting the historic resort into a luxury complex with wellness centers, luxury residences, high-end gastronomy, and beach activities. Other projects included the St. Lazarus Hotel boutique development and the pending Parayialia Hotel, the first 4-star hotel in Dromolaxia-Meneou.
Paphos and Famagusta: Luxury Options for 2026
In Paphos, the Nalu Latchi Leonardo Limited Edition was to open in summer 2026 as a luxury hotel. In Famagusta, two five-star hotels, The Nines in Ayia Napa and Sunrise Emerald in Protaras, were planned to operate the same year.
Limassol: Renovations and Upgrades
Limassol focused on upgrading existing hotels such as Amathus Beach Hotel, St Raphael Resort, and Columbia Beach Resort in Pissouri, enhancing luxury accommodation quality.
Mountain Tourism: Winter and Alternative Experiences
Mountain resorts were also being revitalized with projects like Tree Hotel in Platres (134 rooms) and the historic Verengaria Hotel in Prodromos, undergoing structural and seismic upgrades to offer quality alternative tourism options.
Licensing Challenges
Only 19% of hotels currently had operational licenses, causing delays in project completion. Despite these challenges, Cyprus was positioning itself to enhance its tourism map with new hotels and renovations, creating a more competitive and high-quality visitor experience.
Why it matters
For travel-trade professionals, the pipeline signals a strategic push to upgrade Cyprus’s accommodation stock, particularly in the luxury segment. The concentration of projects in Nicosia and Larnaca suggests a shift beyond traditional coastal hotspots, potentially broadening the island’s appeal for business and alternative tourism. However, the low licensing rate (19%) poses a risk to timely delivery, which tour operators and bedbanks should monitor when contracting inventory for the 2026 season and beyond.
