The hotel group of brothers Manolis and Nikos Varkarakis has taken another step in strengthening its portfolio, becoming the final bidder in ETAD’s tender for a property in Agios Nikolaos, Lasithi. Their offer of 1,309,726.84 euros was the highest in the electronic e-Auction, a process that attracted significant interest, according to the Hellenic Public Properties Company.
The property concerns a four-storey building of 931.76 sq.m. on a plot of 287.68 sq.m., formerly a Class C hotel that later housed the Lasithi Handicraft Center. It is located in a key area, a short distance from the beach and the central market of Agios Nikolaos, a location that, based on the group’s plans, acquires an entirely new role.
Employees as a critical factor
Manolis Varkarakis explains that this acquisition does not involve the development of a new hotel product but the housing of staff for the group’s units:
“The building will be converted into residences for our staff. The group has seven hotels, and for years we rented small closed units to house our employees. We renovated the buildings, fixed them, and the next season the owner asked for excessive rent increases. With this purchase, we ensure stability and humane living conditions.”
This move reflects a reality increasingly discussed in the tourism market: the acute staff shortage and the forced restructuring of hotels to attract and retain employees.
“There are no Greek workers,” says Varkarakis, describing a situation that has become commonplace in the sector. “Economic migrants who filled much of the workforce left after the pandemic. We are forced to bring in workers from different countries. Therefore, we have an obligation to provide housing and food. Without this, there is no season.”
The strategy of offering quality accommodation is no longer optional but a basic condition for the sustainability of hotel businesses, and this ETAD acquisition fits into that framework.
A new city hotel also on the way
Meanwhile, another project is underway for the group in Agios Nikolaos: a 100-room city hotel, in a building that has been closed for many years. Construction has begun and, as Varkarakis notes, “the project will be completed in two years.” With this investment, the group strengthens its position in the area, utilizing vacant properties and creating added value for the city.
Earlier, in July 2023, the group acquired the Sunshine Crete Village and Sunshine Crete Beach hotels in Koutsounari, Ierapetra, with a total capacity of 330 rooms.
At the time, Varkarakis stated that the two complexes, built with the architectural signature of Kokotos, required significant improvements due to age, another example of the group’s strategy to revive older units and create a unified hotel experience under a common brand.
At the same time, the Sunshine Crete facilities include a range of infrastructure (sports facilities, swimming pools, amphitheater, parking), giving the group the ability to develop a higher-level product in southeastern Crete.
