Tzarakis family to invest €85m in new Ierapetra hotels

The Tzarakis family, owner of the five-star Ostria Resort & Spa in Ierapetra, is launching an investment program totaling €85 million. The plan includes the expansion and upgrade of the existing property, as well as the construction of a new standalone five-star plus hotel.

For Ostria Resort & Spa, investments of €35 million are planned, including 60 new accommodation units on a 15-stremma plot expected to open in April 2029, the upgrade of 160 rooms along with a new reception area and an indoor heated pool, and 50 additional Lux-category rooms by 2030.

At the same time, a new five-star plus hotel with 150 rooms is planned on an adjacent 38-stremma plot, with a budget of €50 million. The project is at an advanced planning stage, though no public operational timeline has been announced.

Ostria Resort & Spa currently has about 350 rooms and 1,250 beds, with turnover of around €20 million. The business began in 1997 when George Tzarakis purchased a small hotel and 8.5 stremmata, and the family now holds a total of 220 stremmata of land.