UK officials fear luxury hotel in Greek Cyprus could be used to spy on RAF base: report

Hotel rejects claims as ‘entirely unfounded,’ says it is devoted strictly to tourism and business

British intelligence and military officials have voiced concerns that a Chinese-owned luxury hotel in the Greek Cypriot Administration could potentially be used to monitor activity at the nearby RAF Akrotiri military base, according to a report published Friday.

The 16-story City of Dreams Mediterranean resort near Limassol overlooks parts of one of Britain’s most important overseas military installations, the Telegraph reported, citing several intelligence and military sources.

The resort, which opened in 2023, borders the UK’s Sovereign Base Areas on two sides and is significantly taller than surrounding buildings.

Sources said an observer with binoculars and a suitable vantage point could monitor aircraft taking off and landing, as well as the movements of troops and officials around the base.

Access to the hotel’s top floor, which provides the clearest view of the area, is restricted to guests staying in its two presidential suites, according to the newspaper.

Some officials at RAF Akrotiri reportedly fear that Chinese authorities could attempt to exploit the resort’s location for intelligence-gathering purposes.

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The report stressed, however, that there was no suggestion of wrongdoing by the hotel, its owner or its operator.

City of Dreams Mediterranean is part of Melco Resorts & Entertainment, led by Chinese-Canadian billionaire Lawrence Ho, who sits on the National Committee of the Chinese People’s Political Consultative Conference.

RAF Akrotiri serves as a major hub for British military operations in the Middle East. The base hosts F-35 stealth fighter jets and US U-2 Dragon Lady reconnaissance aircraft.

Sources said a nearby observation point could potentially be used to gather information about aircraft sortie rates, movement patterns, operational procedures, perimeter security, patrols and responses to drone threats.

It could also provide visual confirmation of military flights that do not publicly broadcast tracking information, they added.

The report said the base was expected to deploy counter-surveillance measures in response to the potential risk.

“The security of our people, bases and interests is taken extremely seriously,” a UK Defence Ministry spokesperson said.

“RAF Akrotiri is protected by robust, multi-layered security measures, which we keep under constant review. For reasons of operational security, we do not comment on the details of these measures,” the spokesperson added.

The hotel firmly rejected the claims.

“City of Dreams Mediterranean is a commercial resort dedicated strictly to tourism, leisure and business events,” a hotel spokesperson said.

“Any suggestion that our facilities serve any other purpose is entirely unfounded and is rejected in the strongest terms.”

The spokesperson added that the resort operates under the local licensing, planning and regulatory framework and remains subject to oversight by the relevant authorities.