UK fears Chinese Cyprus hotel could spy on RAF base

British defence and intelligence officials fear a Chinese-owned luxury resort towering over the Greek Cypriot coastline could provide a platform for surveillance of RAF Akrotiri, one of Britain's most critical overseas military installations hosting F-35 stealth fighters and U-2 reconnaissance aircraft. The 16-story City of Dreams Mediterranean, which opened in 2023 near Limassol, borders the UK’s Sovereign Base Areas on two sides and offers sightlines across the sensitive airbase, according to the Telegraph.

Intelligence sources told the newspaper that observers positioned in the hotel’s upper floors—particularly the restricted-access presidential suites on the top floor—could monitor aircraft sorties, troop movements and perimeter security responses using basic optical equipment. The resort is part of Melco Resorts & Entertainment, led by Chinese-Canadian billionaire Lawrence Ho, who serves on the National Committee of the Chinese People’s Political Consultative Conference, a top advisory body to Beijing.

Official responses

A UK Defense Ministry spokesperson emphasized that the base maintains robust protective measures. "The security of our people, bases and interests is taken extremely seriously," the spokesperson said, adding that RAF Akrotiri is protected by robust, multi-layered security measures kept under constant review.

The hotel rejected the allegations, insisting it operates strictly as a commercial tourism venture. "City of Dreams Mediterranean is a commercial resort dedicated strictly to tourism, leisure and business events," a spokesperson said. "Any suggestion that our facilities serve any other purpose is entirely unfounded and is rejected in the strongest terms." RAF Akrotiri serves as a major hub for British military operations across the Middle East and is expected to deploy additional counter-surveillance measures in response to the potential intelligence threat.