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A New Chapter for Patmos Aktis Suites & Spa following a €20 million investment by SMERemediumCap (SMERC)
Posted: March 9, 2023
The €20 million investment in the beachfront, five-star hotel complex Patmos Aktis Suites & Spa on the island of Patmos, by the investment fund SMERemediumCap (SMERC), is currently well underway.
SMERemediumCap (SMERC) acquired Patmos Aktis Suites & Spa in May 2022 and has already advanced a major renovation and modernisation programme. Considered one of the most iconic hotels in the Dodecanese, the property now meets the highest international standards of service, quality, sustainability and environmental responsibility. Notably, the comprehensive investment plan for the renovation of the existing hotel complex, as well as the expansion project on an adjacent, privately owned plot, both currently in progress, have also been included in and partially financed by the Recovery and Resilience Facility.
Η επενδυτική φιλοσοφία του SMERemediumCap II
The hotel has demonstrated a strong commitment to environmental responsibility, respecting the natural landscape of a globally significant destination such as Patmos. It is worth noting that, in addition to the Cave of the Apocalypse of St John, the island is also home to the settlement of Chora, which has been designated a World Heritage Site by UNESCO.
An expansion of the beachfront complex’s existing 56 suites is also underway, through the construction of 34 additional sea-view suites, in collaboration with the architectural firms 3SK Stylianidis and Patricia Anastasiadis. The investment plan has already been submitted to the Archaeological Service, with final approval from the Ministry of Culture currently pending.
The first phase of the investment, relating to the renovation of the existing hotel complex, is scheduled for completion in 2023, while the total investment, including the hotel’s expansion, will approach €20 million. This represents the largest investment ever made on the island of Patmos.
Το επενδυτικό αποτύπωμα του SMERemediumCap I
At the same time, the management of the investment fund SMERemediumCap (SMERC) is in advanced discussions regarding a franchising partnership with a prestigious international hotel group of global standing. The objective is to further enhance the international profile of Patmos and the hotel, by attracting high-end international visitors. In parallel, such a partnership is expected to lead to an upgrade of the services offered.
Διακυβέρνηση και ομάδα
The hotel currently employs an experienced team of 85 people. Upon completion of the investment, employment is expected to exceed 110 employees, effectively doubling staffing levels compared to 2019, while also generating additional positive spillover effects for the economic activity of the local community and the wider region.
“Our investment in Patmos Aktis Suites & Spa is an example of the successful turnaround of a hotel asset that adds value, investment and jobs to Patmos and the Greek economy, while also serving as a benchmark for a high-quality tourism and hospitality product. Our objective is to contribute to the attraction of high value-added visitors to the tourism sector, whose outlook for 2023 appears particularly positive,” said Nikos Karamouzis, Head of SMERemediumCap. “This was also one of the reasons why our investment fund recently chose, through a joint venture with Latonia Enterprises and Brown Hotels, to further increase its exposure to the hospitality sector by acquiring a loan portfolio of 72 hotel units, with a nominal claim value of €254 million, known as Project Tethys, from Intrum,” Mr Karamouzis explained.
The Hotel
Patmos Aktis Suites & Spa is located in Grikos Bay, along the shoreline of the lagoon formed by the island’s uniquely beautiful coastline on the southeastern side of Patmos. At the same time, it enjoys close proximity to leading Aegean destinations such as Arki, Marathi, Fournoi, Lipsi and Aspronisi, enabling same-day sea access for both speedboats and traditional vessels that berth at the hotel’s private pier in Grikos Bay.
The complex features rooms, suites and maisonettes ranging from 31 to 93 square metres, many of which include private pools. Its defining architectural characteristics are its understated design and soft, earthy colour palette. The property traces its origins to the historic “Xenia” hotel development programme of the early 1960s. After a prolonged period of abandonment, it was acquired in 2009 by the hotel company Divine Group, which, in collaboration with Mastrominas Architects and ISV Architects, repositioned it in both the domestic and international markets. In 2022, following a competitive tender process, Divine Group proceeded with the sale of the hotel to the investment fund SMERemediumCap.
Patmos Aktis Suites & Spa resumed operations in its upgraded form and under new ownership and management on 3 June 2022, with the decisive contribution of the project’s advisor, Pavlos Zorbas. Now staffed by experienced hospitality professionals, the hotel has succeeded, following a prolonged period of underperformance, in increasing occupancy and revenues, while significantly improving productivity indicators.
The objective of the new management is to further increase overall occupancy to 71% in 2023, and to 75% in the years ahead, while extending the hotel’s operating season to 160 days, from approximately 120 days until recently, alongside a continued improvement in guest satisfaction levels.
For this purpose, the hotel:
(a) strengthens and upgrades its services through highly trained human resources, achieving a ratio of 1.5 employees per room, while providing an excellent working environment; and
(b) upgrades all of the company’s software systems with modern digital solutions and implements a comprehensive direct marketing programme aimed at increasing direct bookings. Through this approach, gross profit margins are strengthened and the operating season is extended to a period exceeding five months.
Already, after one year under the new ownership of SMERemediumCap (SMERC), direct bookings account for 73% of total reservations, while 63% of the hotel’s guests come from abroad. At the same time, the continuous upgrading of infrastructure and services has endowed Patmos Aktis Suites & Spa with an excellent reputation: guest reviews on social media place it among the top hotels in the Mediterranean in terms of customer satisfaction.
“This is a truly unique hotel on the enchanting island of Patmos, where the ordinary is transformed into the extraordinary, the familiar becomes distinctive, and each day gives new meaning to the concept of leisure,” notes Mr Theodoros Terzopoulos, the new Chief Executive Officer of Patmos Aktis Suites & Spa. “It is a jewel of the Aegean, an ideal beachfront destination for rest and relaxation, as well as a place of rejuvenating seclusion and reflection,” he adds. “Carefully curated wellness services by the ANASA Wellness & Spa, exploration experiences across the stunning beaches and coves of Patmos and the surrounding islands, combined with multiple gastronomic offerings created by Patmos Aktis’ chef, Mr Nikos Konstantinou, promise unforgettable holidays and true relaxation for our guests,” he emphasises. “It represents a blend of contemporary luxury and sustainable architecture, built with respect for the surrounding environment and in complete harmony with the natural landscape,” he explains.
The hotel is located a short distance from Chora, the medieval settlement of Patmos, at the centre of which stands the Monastery of Saint John the Theologian, built in 1088 AD. Visitors can reach the island by ferry from Piraeus, or alternatively by air via Kos, Rhodes, Samos, Leros or Kalymnos, followed by a scheduled local high-speed ferry. Access is also available by chartered helicopter.
The presentation of the above developments took place today at the Benaki Museum, by the leadership of SMERemediumCap (SMERC) and the management of the hotel. It is noted that the event was also attended by Giorgos Chatzimarkos, Governor of the South Aegean Region, and Eleftherios Pentes, Mayor of Patmos, both of whom delivered welcoming remarks.
Mr Chatzimarkos, among other comments, stated:
“The South Aegean Region, and I personally, will always stand by investments that bring added value to the tourism product and employment for our island communities and for the country as a whole, prioritising high-quality hospitality, respect for the environment and traditions, and strong synergies with local society,” noted the Governor of the South Aegean, Giorgos Chatzimarkos, explaining that “Patmos Aktis Suites & Spa sets new standards for Greek tourism, validating the efforts we have been making for many years across the South Aegean, a region which, beyond leading Greek tourism, has also achieved the highest growth rate among all European regions.”
Finally, Mr Eleftherios Pentes, in his address, emphasised:
“We are particularly pleased with the investment by SMERemediumCap in Patmos and Patmos Aktis Suites & Spa, as it upgrades the island as a destination and makes top-tier infrastructure and services available to its visitors, while at the same time respecting its natural beauty and cultural heritage. We therefore welcome investment projects of this quality, which have a beneficial impact on economic activity and employment for the residents of Patmos.”
Hotel website: Patmos Aktis Suites & Spa – https://www.patmosaktis.gr/en/
Information – email: office@patmosaktis.gr
Tel.: +30 210 6231 297
About SMERemediumCap (SMERC)
SMERC focuses its investment strategy on mid-sized Greek companies, and was the first Greek private equity fund established in Greece. SMERC has raised and manages €145 million of capital from 41 institutional and private investors, including distinguished Greek and international institutional investors, pension funds, insurance companies and family offices. The investment fund and its experienced team are led by Chairman Nikos Karamouzis.