Hilltop Xenia Hotel in Kozani Goes to Tender — What Real Estate Greece Investors Need to Know

A rare hilltop property opens in the real estate Greece market

A rare investment window has opened in the real estate Greece market: Xenia Kozani, a mid-century hilltop hotel with panoramic views, is being offered for long-term lease by the Hellenic Public Properties Company. This is a chance for investors to engage with a building that is part of the GNTO Xenia program of the 1950s–1970s, a series of architect-designed hotels that helped develop Greek tourism.

The tender is run through the state’s digital platform e-publicrealestate.gr, and the deadline for documentation is Thursday, October 15, 2026. We wrote this to give buyers, investors and expats a practical, critical guide: what the asset is, how the tender works, what the risks are, and what to budget for before you bid.

Why Xenia Kozani matters: heritage, design and location

Xenia Kozani is not just a hotel building; it is part of a postwar public program that shaped Greece’s tourism infrastructure. The GNTO Xenia program was launched in the mid-20th century and produced more than 40 Xenia properties across Greece. Those projects used modernist design language to create hotels that combined local identity with contemporary architecture.

• The property is located in the Skrika area on Metamorphosis tou Sotiros hill, giving it commanding views over Kozani and the wider region of Western Macedonia.
• ETAD describes the site as having “particular historical and architectural value” and says it can serve as a reference point for the tourism and business development of the region.

For investors focused on real estate Greece, heritage hotels like Xenia Kozani carry two linked appeals: they can attract tourists and local events because of their character, and they qualify for attention under conservation policies that can influence planning, funding and tax treatment.

Tender details: what the public notice says

The tender is run by Hellenic Public Properties Company (ETAD) using the state portal e-publicrealestate.gr. Key facts from the announcement:

• The asset is offered for a long-term lease rather than outright sale.
• Access to the General and Specific Terms requires registration on e-publicrealestate.gr.
• The deadline for submitting required documentation is 15 October 2026.
• ETAD’s stated objective is to attract investors who will deliver a modern redevelopment plan while preserving the property’s distinctive character and historical identity.

What 'long-term lease' means in practice

Long-term lease tenders from public property agencies in Greece typically involve:

• A contractual lease period that can range from several decades up to 99 years depending on the tender specifics.
• Lease payments or rent linked to investment milestones, traffic or fixed annual fees; the exact model is given in the tender terms.
• Obligations for restoration, maintenance and permitted uses spelled out by the lessor.

You must read the tender’s General and Specific Terms to understand the guaranteed lease length, payment schedule and what constitutes permitted alterations. ETAD will expect bidders to propose a redevelopment plan that protects the hotel’s historical identity.

The investment case: why some buyers will be interested

From an investment viewpoint, Xenia Kozani can be attractive for several reasons:

• Location: hilltop views and a close relationship to Kozani city can appeal to both tourist and business travellers.
• Brand heritage: Xenia hotels have recognition among aficionados of modern Greek architecture, adding niche appeal for boutique hospitality products.
• Redevelopment upside: if the lease terms allow significant restoration or repurposing, there can be value unlocked by an operator who brings a credible hospitality plan.
• Public-sector transparency: ETAD’s stated use of an open tender is helpful because it reduces tail risk from opaque back-channel deals.

As with any heritage hotel in a regional market, the return depends on accurate demand forecasting and tight cost control. We advise investors to build a conservative occupancy and average daily rate (ADR) model before bidding, taking into account seasonal patterns for Western Macedonia and the mix of business versus leisure demand.

Key risks and constraints investors must weigh

Historic properties carry complex risk profiles. For Xenia Kozani, consider these specific areas:

• Conservation restrictions: preserving historical character will limit the scale and type of structural alterations. Expect working with heritage architects and national or municipal conservation authorities.
• High renovation costs: mid-century buildings often need major upgrades to meet modern safety, seismic and accessibility standards; costs can be higher than standard refurbishments.
• Market demand: Kozani is not a mainstream Greek seaside destination; demand will rely on regional tourism, events, business travellers and local spending.
• Lease constraints: long-term leases can tie capital up for decades; exit strategies are limited compared with freehold sales.
• Regulatory approvals: approvals for hospitality use, increases in room numbers, or changes in services require permits which can extend timelines.

We have seen heritage redevelopments in Greece where renovation budgets doubled because of structural issues uncovered after work began. Factor a contingency of at least 20–30% above initial estimates for unforeseen works and compliance upgrades.

Practical steps for bidders: due diligence checklist

If you are considering the tender, follow a structured process. Here are essentials:

1. Register on e-publicrealestate.gr and download the General and Specific Terms.
2. Engage a local legal adviser familiar with Greek public tenders and property law to review lease conditions and obligations.
3. Commission a technical due diligence: structural survey, MEP assessment (mechanical, electrical, plumbing), and seismic compliance review.
4. Appoint a conservation architect to advise what works are permitted and how to present a plan that meets ETAD’s preservation requirement.
5. Prepare a feasibility model that includes:
   • Renovation capex and schedule
   • Operating projections (occupancy, ADR, F&B revenues, events income)
   • Lease costs and any performance-linked payments
   • Scenario analysis (base, downside, upside)
6. Investigate funding routes: bank loans, private equity, or partnerships with hotel operators; explore EU regional funds that support cultural heritage redevelopment in Greece.
7. Check local infrastructure plans: road access, utilities, nearby investment projects that could affect the asset’s attractiveness.

Start these steps early. Access to the tender documents requires registration, and gathering accurate technical data takes time.

How to structure a redevelopment proposal that will win

ETAD says it wants investors who will deliver a modern redevelopment plan while preserving the property’s character. What that typically means in practice:

• Respect the original volume and façade while upgrading interiors for modern hospitality use.
• Offer a business plan that shows local economic benefit: jobs for Kozani, use of local suppliers, and plans for cultural activation.
• Include a phased investment timeline that demonstrates the ability to finance the works and operate the hotel during/after refurbishment.
• Present environmental upgrades: energy efficiency, waste management and sustainable water practices are increasingly weighed by public agencies.

A well-scoped proposal balances financial viability with credible conservation measures. We have seen public tenders favour proposals that bring strong operator experience and clear local engagement plans.

Broader context: the Xenia network revival and regional impact

ETAD frames this tender as part of a wider strategy to revive the historic Xenia portfolio through transparent procedures.