Switzerland-based SC Capital Holding AG has entered late-stage negotiations to acquire a landmark luxury hotel on the southern coast of Cyprus, in what marks the firm’s first investment in the island nation and the latest milestone in its expanding Mediterranean hospitality portfolio.
The move aligns with SC Capital Holding’s established strategy of pursuing high-value, ESG-led hospitality investments across coastal and urban centers. Chief Executive Officer Simo Chaabani confirmed that a delegation of senior executives recently completed a series of site inspections across Limassol and Paphos, identifying key opportunities in assets offering both architectural character and expansion potential.
“Cyprus offers the confluence of architectural heritage, year-round airlift, and upscale leisure demand that fits perfectly with our value-creation model,” said Simo Chaabani. “We are targeting properties where thoughtful capital, rigorous branding, and operational re-engineering can unlock long-term value for guests and investors alike.”
According to the firm,he itinerary, designed to enable efficient multi-market due diligence, prioritized hotels with beachfront frontage, strong structural integrity, and the potential to integrate low-rise branded residences as part of a broader redevelopment plan.
The prospective Cyprus acquisition builds upon SC Capital Holding’s proven Mediterranean investment playbook. In Albania, the firm is currently evaluating a pipeline of more than 500 keys across Sarandë and Vlorë, while active projects continue in Central Europe. The underlying thesis remains disciplined: acquire underutilized hospitality assets, implement best-in-class sustainability enhancements, and drive superior revenue performance through advanced operational management
“We approach each transformation holistically,” Simo Chaabani noted. “From upgrading energy systems to integrating ESG metrics, our focus is on creating long-term value for both guests and stakeholders.”
This flight was 100% offset with carbon compensation.
SC Capital Holding’s leadership team brings decades of experience spanning corporate banking, hotel asset management, and construction engineering.
The firm’s entry into Cyprus comes at a time of renewed market momentum. Tourism arrivals surpassed 4.4 million in 2024, nearing pre-pandemic highs, while average daily rates for five-star hotels rose 9 percent year-on-year, according to national tourism data. Yet many legacy properties continue to operate below their potential, lacking the sustainability credentials and brand affiliations now demanded by international travelers.
“Cyprus sits at the crossroads of Europe, the Middle East, and North Africa, but much of its luxury inventory has stood still,” Simo Chaabani observed. “That disconnect between destination appeal and asset performance positions us to create a genuine flagship.”
Every acquisition undertaken by SC Capital Holding is evaluated against its proprietary green conversion roadmap. Planned upgrades for the Cyprus property include achieving LEED Gold or BREEAM Excellent certification within three years, installing rooftop solar arrays with battery storage to supply 40 percent of energy needs, reducing water consumption by 30 percent through grey-water recycling and low-flow fixtures, and achieving a 75 percent waste diversion rate supported by on-site composting and recycling partnerships.
Complementing these environmental objectives is the firm’s Smart-Stay™ technology stack. Features include AI-powered energy management systems, contactless guest journeys, and predictive maintenance tools, all designed to reduce utility costs while elevating the guest experience.
“Efficiency and comfort can go hand in hand,” said Simo Chaabani. “We aim to deliver a guest experience that’s both sustainable and refined.”
To finance the Cyprus acquisition, SC Capital Holding is deploying a combination of internal equity and a green-bond tranche currently being syndicated with European lenders. The company is also in discussions with two global luxury operators regarding long-term management agreements, while engaging with local vocational institutes to foster talent development pipelines.
“We view every project as a partnership” Simo Chaabani emphasized. “Success depends on aligning with municipal leaders, community stakeholders, and world-class operators who share our commitment to responsible growth.”
The transaction is expected to close in Q4 2025, with phased renovations commencing immediately thereafter. The grand reopening of the rebranded property is anticipated for the 2027 high season.
Headquartered in Zug, Switzerland, SC Capital Holding AG is a privately held investment group specializing in the acquisition, development, and management of hospitality assets across Europe. The firm integrates disciplined capital allocation, sustainability leadership, and a technology-first mindset to deliver superior risk-adjusted returns.
For more information, visit: www.sccapitalholding.ch.
