Reading time
3 min
Views
455
Added
17.08.2026
Updated
17 August 2026

From Budget Hotels to Premium Stays: How Cyprus’s Hospitality Sector Is Changing

Cyprus’s hospitality industry is gradually evolving in line with the changing expectations of international travelers. Hotels are increasingly offering more than just standard accommodation, adding extra services and more personalized experiences — from pet-friendly stays to specialized dining and premium service.

The government-controlled areas of Famagusta remain the leader in terms of the number of tourist accommodation establishments, with 572 units. Protaras accounts for 300 of them: 3 five-star, 15 four-star and 15 three-star hotels, as well as smaller accommodation facilities. Ayia Napa has 272 hotels, including 10 five-star, 18 four-star and 24 three-star properties. The resort, once a small fishing village, is now considered one of Cyprus’s main tourist centers.

Paphos ranks second with 330 hotels: 12 five-star, 24 four-star and 10 three-star properties. In the Polis Chrysochous area, 206 accommodation establishments are registered, including the famous five-star Anassa, as well as 2 three-star hotels and smaller accommodation facilities.

Larnaca has 261 hotels, including 2 five-star, 6 four-star and 11 three-star properties. Boutique hotels located in restored mansions and historic buildings are particularly popular in the city.

Limassol has 231 accommodation establishments — 8 five-star, 10 four-star and 8 three-star hotels. Nicosia has 202 hotels, including 2 five-star, 2 four-star and 4 three-star properties.

Cyprus hotels adapt to new tourist preferences

The mountain regions form a separate segment. There are 343 accommodation establishments in the Troodos communities. Around 40 of them operate as full-service hotels, while the rest are smaller tourist accommodation facilities. At the same time, Cyprus tourism is becoming increasingly focused on travelers’ individual needs. Of the 767 licensed hotels, 467 accept guests with pets, while 360 offer specialized vegan menus.

These categories are already officially featured in materials published by the Cyprus Deputy Ministry of Tourism, which provides separate lists of pet-friendly and vegan-friendly hotels. As a result, Cyprus’s hotel market is gradually moving away from a one-size-fits-all tourism model and focusing more on specific groups of travelers — pet owners, vegans, boutique-hotel enthusiasts and visitors willing to pay more for comfort and additional services.

От бюджетных отелей к премиум-отдыху: как меняется гостиничный сектор Кипра

Tourists increasingly choose higher-end hotels

The growing interest in higher-quality accommodation is also reflected in the statistics. According to the source data, the number of travelers in 2025 reached 4,029,974, up 8.4% compared with 2024. At the same time, demand for higher-category hotels grew faster:

  1. 908,479 tourists chose five-star hotels — an increase of 16.2%;
  2. 1,061,434 stayed in four-star hotels — up 13.9%;
  3. 701,103 chose three-star hotels — up 5.3%;
  4. 214,384 tourists stayed in two-star hotels — up 5.2%;
  5. 90,007 guests chose one-star accommodation — an impressive increase of 75.2%;
  6. another 152,111 people stayed in unrated hotels — up 56.7%.

Official data from the Statistical Service of Cyprus show an even higher figure specifically for tourist arrivals: in 2025, 4,534,073 tourists visited the island, 12.2% more than in 2024, when 4,040,200 arrivals were recorded. Tourism revenue also increased, reaching an estimated €3,696.1 million in 2025, up 15.2%. Average expenditure per tourist amounted to €815.16, 2.6% higher than the previous year.

Cyprus focuses on a higher-value tourism product

The figures show that Cyprus’s hotel market is developing not only quantitatively but also qualitatively. Tourists are increasingly choosing five- and four-star hotels, while hotels are responding by expanding their services and moving toward more specialized formats. This is particularly important for Cyprus, where tourism remains one of the key sectors of the economy and where the island welcomed more than 4.5 million tourists for the first time in 2025. According to the Deputy Ministry of Tourism, average expenditure per visitor also increased to €822, compared with €799 a year earlier, while average daily spending reached €99.5, up from €92.8 in 2024.

As a result, the strategy of Cyprus’s hospitality industry is becoming increasingly clear: to attract not only more tourists, but also travelers who are willing to spend more on high-quality accommodation, personalized services and premium holidays.

Source: stockwatch.com.cy
Photos: DOM, Pixabay

Planning to buy an apartment or house in Cyprus? Visit DOM Real Estate website - the number one real estate agency on the island! The company's website offers a huge selection of residential and commercial properties. With over 100,000 options to suit any taste and budget, experienced agency specialists will gladly assist you in making the right choice.

Add a comment
Leave a comment
Компания «Dom Real Estate» Контакты:
Адрес: Limassol, Cyprus,
Телефон:+357 25 212 212, Электронная почта: info@dom.com.cy