Nicosia, Cyprus. Occupancy levels across Cyprus’ hotel sector in 2025 broadly matched those of a year earlier and in some cases edged slightly higher, according to the Cyprus Hoteliers Association (Pasyxe). Pasyxe said the results mark a second consecutive year of stable performance.
Stable occupancy and operating conditions
Pasyxe President Thanos Michaelides said that maintaining similar results over two successive seasons has helped create a more predictable operating environment for the industry. He said that “two consecutive years with similar results create an environment of stability”.
Profitability remains the key concern
Michaelides told the Cyprus News Agency (CAN) that “the occupancy rates confirm the success of 2025”, while noting that profitability has not followed the same upward path. He said that despite improved revenues, operating costs remain high, with energy among the most significant expenses for hotels.
Outlook for 2026 and year-round operations
Michaelides described 2025 as “a good season”, adding that it strengthens stability and creates momentum for the future. He said that “if 2026 moves at the same pace as 2024 and 2025”, it would further support efforts towards year-round hotel operations.
Investment needs and labour proposals
Michaelides emphasised the need for continuous investment in hotel units to improve services and upgrade building facilities, adding that such investment requires adequate profitability so that “investments can be repaid”. On labour issues, he said steps have been taken forward in recent years, particularly in the process of issuing work permits for personnel from third countries, who he said now constitute the largest labour pool for the hotel industry. He added that the association has submitted specific proposals to the Ministry of Labour aimed at facilitating recruitment and creating stability for third-country workers so that “they can work in Cyprus on a full-time basis”.
What do you consider the most important factor for Cyprus hotels in 2026: occupancy, profitability, or staffing?
