Honestly, if you're looking for that legendary Cretan escape you saw on Instagram three years ago, you might get a bit confused when you pull up to the gates. The place we all knew as Blue Palace a Luxury Collection Resort & Spa Elounda has hit a massive fork in the road. It’s not just a name change; it’s a total identity shift that has basically split the property into two different worlds.
Most people don’t realize that the "old" Blue Palace, with its 251 rooms and sprawling layout, is currently in the middle of a high-stakes evolution. As of 2026, the main part of the resort is being reborn as the Rosewood Blue Palace. But here’s the kicker: while that massive renovation is happening, a smaller, more intimate piece of the soul of the original hotel is already open and running under the name Phāea Blue Palace.
It’s confusing. I know.
The Identity Crisis (And Why It’s Good for You)
For decades, this spot was the crown jewel of Elounda. It was that place with the iconic funicular that took you down the steep hillside to a private pebble beach. You had the view of Spinalonga Island—the former leper colony made famous by Victoria Hislop’s novels—right in your face. It was grand. It was Marriott-affiliated. It was the "Luxury Collection" standard.
But the Sbokou family, who own the place through their company Phāea, decided they wanted something more "Cretan" and less "corporate."
So, they did something bold. They carved out a section of the resort to create a 47-room boutique experience. This is what currently carries the torch of the Blue Palace name while the rest of the site is under the Rosewood hammer. If you book now, you aren’t getting a 200-room mega-resort. You’re getting a member of the Small Luxury Hotels of the World (SLH). It’s quieter. It’s vibey. It feels like someone’s very expensive summer home rather than a hotel lobby.
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What’s Actually Happening with the Rosewood Transition?
If you’re hunting for the "Luxury Collection" experience specifically, you’re essentially chasing a ghost. That partnership has ended to make way for Rosewood's entry into the Greek market.
The upcoming Rosewood Blue Palace, slated for a full reveal in 2026, is being designed by K-Studio. If that name sounds familiar, it’s because they did the Mandarin Oriental Costa Navarino. They are the masters of that "rough-edged luxury" look—lots of local stone, muted earth tones, and architecture that looks like it grew out of the mountain.
Here is what the "new" big resort will look like:
- 154 rooms and suites (down from the original 250+, meaning more space per guest).
- 85 private pools, because apparently, one giant pool is never enough in Elounda.
- An Asaya wellness concept, which is Rosewood’s fancy way of saying a spa that actually looks at your lifestyle, not just your back knots.
- Six restaurants designed by Afroditi Krassa, focusing heavily on fire-cooking and "hyper-local" ingredients.
The Spinalonga Factor
You cannot talk about the Blue Palace a Luxury Collection Resort & Spa Elounda without talking about that view. Spinalonga is right there. It’s eerie and beautiful.
Most guests just stare at it from their balcony with a glass of Assyrtiko. Don't do that. Or rather, do that, but then take the hotel’s traditional caique (a wooden fishing boat) across the water. The resort has its own jetty. It’s a five-minute ride, but it feels like a century.
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A lot of travel bloggers tell you to take the big tourist ferry from Elounda port. Honestly? That’s a mistake. It’s crowded and loud. The hotel’s private boat is the move, especially if you go at "Golden Hour" when the stones of the fortress turn a weird, glowing orange.
Living the Boutique Life: Phāea Blue Palace
Since the main resort is a construction zone or in transition, the Phāea Blue Palace is where the action is right now. It’s a 5-star boutique setup with 47 bungalows and suites.
It feels different.
The check-in isn't behind a desk; it's on a sofa in the Arsenali Lounge with an iPad and a drink. The vibe is "conscious luxury." They have this thing called the Phāea Plan Bee, where they’ve installed beehives to help the local ecosystem. You can even go on a tour of the organic gardens and taste the honey. It sounds a bit "woo-woo," but when you’re eating a salad where the tomatoes were picked ten feet away, you kind of get it.
The Food Situation
The dining has shifted from "International Luxury" to "Cretan Soul."
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- Anthós: This is the flagship now. It’s open-air, right by the pool. They do a lot of cooking over an open flame.
- Blue Door: This is the legend. It’s an old fisherman’s stone cottage right on the water. Blue chairs, white tables, fresh calamari. It’s the Greek cliché you actually want to live in.
- Votsalo Bar: Great for a sundowner, but honestly, the Arsenali Lounge has better sunset views over the gulf.
Is It Still Worth the Trip During the Reno?
This is the big question. If you hate the sound of a hammer or a restricted map, you might want to wait until the Rosewood side fully debuts later in 2026.
However, if you want the Elounda prestige without the 500-guest crowd, the Phāea boutique version is a secret weapon. You get the same private beach—which is pebbles, by the way, so bring those dorky rubber swim shoes—and the same world-class service, but with a fraction of the people.
A quick reality check on the beach: It’s not soft white sand. It’s a 200-meter stretch of smooth Cretan pebbles. The water is gin-clear, but it’s deep. If you have kids, they’ll need floaties immediately. The resort has a wooden deck with massive, plush loungers, so you aren't actually lying on the rocks, but getting in and out of the water requires a bit of grace (or those shoes I mentioned).
Actionable Insights for Your 2026 Booking
If you’re planning to visit the area formerly known as Blue Palace a Luxury Collection Resort & Spa Elounda, here is the play:
- Check the Name Twice: Ensure you are booking "Phāea Blue Palace" for the current boutique experience. If the site says "Rosewood," check the opening dates carefully, as some wings are still being finalized.
- Skip the Standard Rooms: In a place like this, the view is the product. If you aren't facing Spinalonga, you're missing the point. The "Island Luxury Suites" are the sweet spot for space and views.
- Rent a Car: Elounda is beautiful, but the real Crete is 20 minutes inland. Go to the village of Kritsa. It’s one of the oldest villages in Crete, famous for weaving and some of the best olive oil you’ll ever taste.
- The Spa Strategy: Even with the transitions, the Elounda Spa remains a powerhouse. They use brands like Valmont and Anne Semonin. Book your treatments for late afternoon so you can use the thalassotherapy pool while the sun is setting.
- Walk to Plaka: Don't just eat at the hotel. Walk five minutes north to the village of Plaka. It’s tiny, charming, and has about a dozen tavernas that are half the price of the resort and just as delicious.
The era of the "Luxury Collection" Blue Palace has ended, but the new version is looking a lot more authentic. It’s less about the gold-plated brand name and more about the salt, the stone, and the quiet of the Mirabello Gulf. Just make sure you know which "palace" you're actually checking into.